Title: Measuring the productivity and the efficiency of the Mexican Central Bank
Authors: Maria Rosa Nieto Delfin - Investigaciones y Estudios Superiores SC (Mexico)
Rafael Bernardo Carmona Benitez - Investigaciones y Estudios Superiores, S. C. (Mexico) [presenting]
Abstract: The aim is to measure the efficiency and productivity of the Mexican Central Bank (BANXICO) and propose strategies to become more competitive and efficient in the future. Four DEA methods are applied to measure its productivity and efficiency against the European Central Bank, the Reserve Bank of Australia, the Bank of Canada, the Bank of Japan, the Reserve Bank of New Zealand, the Swedish Riksbank, the Swiss National Bank, the Bank of England and the Federal Reserve System of the USA; second, to compare the efficiency of the Latin American Central Banks (LACBs) against the most efficient ones; and third, to assess the efficiency among the LACBs. The input variables are the TIIE (Interbank interest rate of equilibrium) and knowledge of the economy; and the output variables are inflation and the volatility of the GDP (Gross Domestic Product). We obtain that LACB and BANXICO are less efficient than the rest of the banks. We use the weights obtained by the DEA methods to propose economic strategies that BANXICO can implement to be a more efficient central bank compared with the better behavior banks in the sample.