Unusually lax monetary policies implemented by many developed countries and in particular by the United States, have resulted in policy and market interest rates currently at or close to all-time lows in those nations. Since Mexico’s yield curve has been shifting downward in tandem with that of the United States, domestic yields have also fallen to record-low levels.
For a discussion of similar proposals, see M. Cioffi, P. Rizza, M. Romanelli and P. Tommasino (2019), ‘Outline of a redistribution-free debt redemption fund for the euro area’, Banca d’Italia, Questioni di Economia e Finanza (Occasional Papers), 479, 2019; in particular, among the earliest contributions, see V. Visco, ‘Innovative Financing at a Global and European Level’, Hearing before the European Parliament, 10 January 2011 and German Council of Economic Advisors (2011), ‘Assume responsibility for Europe’, Annual Report 2011/12.