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Imagine that there are three tax brackets: 10%, 20%, and 30%. The 10% rate applies to income from $1 to $10,000; the 20% rate applies to income from $10,001 to $20,000; and the 30% rate applies to all income above $20,000. Under this system, someone earning $10,000 is taxed at 10%, paying a total of $1,000. Someone earning $5,000 pays $500, and ...
After the Mexican peso crisis of December 1994, the peso sharply depreciated from MXN$3.4 to MXN$7.2 in 1995. It then traded between MXN$8 and MXN$11 from 1998 to 2008, briefly depreciated to MXN$15.56 in March 2009 due to the 2008 global financial crisis, but then settled between MXN$12 and MXN$14 from 2009 to 2014.
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