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Mexico's crisis: financial modernisation and financial fragility

Author

Listed:
  • G. J. LÓPEZ

    (Mexico's National Autonomous University)

Abstract

The work seeks to analyse Mexico's recent exchange-rate crisis in relation to the debate on financial modernisation and external financial fragility. The author reviews some key features of Mexico's 1988-1994 economic recovery before analysing some aspects of the country's evolution in the light of the financial modernisation debate. An explanation of the crisis in which Mexico's external financial fragility is emphasised is provided. Finally, the relationship between financial modernisation and the external crisis is examined. A number of conclusions are reached about Mexico's experiences in attempting to achieve satisfactory and sustainable growth rates.

Suggested Citation

  • G. J. Lã“Pez, 1997. "Mexico's crisis: financial modernisation and financial fragility," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 50(201), pages 165-185.
    • Handle: RePEc:psl:bnlaqr:1997:23
    as

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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/10575/10459
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    References listed on IDEAS

    as
    1. Obstfeld, Maurice, 1986. "Rational and Self-fulfilling Balance-of-Payments Crises," American Economic Review, American Economic Association, vol. 76(1), pages 72-81, March.
    2. Krugman, Paul & Taylor, Lance, 1978. "Contractionary effects of devaluation," Journal of International Economics, Elsevier, vol. 8(3), pages 445-456, August.
    3. Kamin, Steven B. & Rogers, John H., 1996. "Monetary policy in the end-game to exchange-rate based stabilizations: the case of Mexico," Journal of International Economics, Elsevier, vol. 41(3-4), pages 285-307, November.
    4. Calvo, Guillermo A. & Mendoza, Enrique G., 1996. "Mexico's balance-of-payments crisis: a chronicle of a death foretold," Journal of International Economics, Elsevier, vol. 41(3-4), pages 235-264, November.
    5. Krugman, Paul, 1979. "A Model of Balance-of-Payments Crises," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 11(3), pages 311-325, August.
    6. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial modernisation; Financial fragility; Mexican exchange-rate crisis;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises

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