Effect of the Structure of Public Debt on the Development of Economic Activity in Mexico

Abstract

To evaluate the convenience of modifying the structure of the national debt of Mexico, this paper realized diverse estimations that try to verify the effect that the changes in the internal national debt have on the behavior of the economic activity. It founded evidence that changes in the internal debt affects the interest rates, besides those changes in the interest rates have affected the investment level. However the relation is weak, which means that there isn,t irrefutable evidence indicating that a change in the structure of the public portfolio might affect the economy, therefore it concludes that this motive would nos justifies a change in the structurre of the portfolio of the federal goverment.