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  4. May 2018
  5. The Geographic Spread of a Large Devaluation

The Geographic Spread of a Large Devaluation

  • Javier Cravino
  • Andrei A. Levchenko
AEA Papers and Proceedings
vol. 108, May 2018
(pp. 562-66)
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Abstract

Cravino and Levchenko (2017) establish that the 1994 Mexican peso devaluation raised the prices of consumption baskets of low-income households substantially more than the prices of the consumption baskets of high-income households. In this paper, we explore this result further by focusing on the regional variation in how much prices of consumption baskets changed following the devaluation. Our main finding is that the devaluation was anti-poor in all regions, but there is substantial regional dispersion in the relative inflation faced by the poor.

Citation

Cravino, Javier, and Andrei A. Levchenko. 2018. "The Geographic Spread of a Large Devaluation." AEA Papers and Proceedings, 108: 562-66. DOI: 10.1257/pandp.20181072

Additional Materials

JEL Classification

  • E21 Macroeconomics: Consumption; Saving; Wealth
  • E31 Price Level; Inflation; Deflation
  • F31 Foreign Exchange
  • I32 Measurement and Analysis of Poverty
  • O11 Macroeconomic Analyses of Economic Development
  • O19 International Linkages to Development; Role of International Organizations