Therefore, monetary policy should be vigilant and actions should be timely in order to prevent supply-price and exchange-rate shocks as well as other factors from contaminating the behavior of other prices and pushing up inflation expectations away from the permanent target. Convergence to price stability is a necessary condition for financial stability and longterm economic growth.
Concluding remarks To conclude, sustained higher long-term economic growth in Mexico requires consolidated foundations for financial stability. In addition to convergence to price stability, the basic policy agenda includes the strengthening of public finances, especially given significant dependence on oil revenues and the fact that the price of oil in recent years has been unusually high but might not prevail in the future.