Suchergebnisse

This article traces the ways in which political, economic, domestic, and international factors converged to provoke a massive financial crisis in Mexico in 1994/5, as well as its consequences for future reform efforts. The author argues that the ruling PRI party and international investors were equally adamant in defending the anchored exchange rate. However, in attempting to appease both domestic and foreign interests, the Salinas administration lost control of the macroeconomic fundamentals. While the combination of a massive multilateral loan and the shift to a floating exchange rate paved the way for Mexico's rapid economic recovery, a main legacy of the crisis was the political demise of the PRI. (Rev Econ Pol/DÜI)