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Causes and Lessons of the Mexican Peso Crisis

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  • Stephany Griffith-Jones

Abstract

This paper analyses in depth the causes of the Mexican peso crisis, so as to learn relevant lessons for similar crisis occurring in other developing or transitional economies. The study follows a relatively chronological order, examining first the apparently golden period, when Mexico was acclaimed world-wide as a successful reformer. The next section analyses the period when 'clouds emerge and darken', examining policy options that could have been followed by the economic authorities. The last section focuses on the devaluation of 20 December 1994, and the resulting crisis.

Suggested Citation

  • Stephany Griffith-Jones, 1997. "Causes and Lessons of the Mexican Peso Crisis," WIDER Working Paper Series wp-1997-132, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-1997-132
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    File URL: https://www.wider.unu.edu/sites/default/files/WP132.pdf
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    References listed on IDEAS

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    1. Culpeper, Roy & Griffith-Jones, Stephany, 1992. "Rapid return of private flows to Latin America; new trends and new policy issues," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 33967, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Guttentag, Jack & Herring, Richard, 1984. "Credit Rationing and Financial Disorder," Journal of Finance, American Finance Association, vol. 39(5), pages 1359-1382, December.
    3. Mr. Burkhard Drees & Ceyla Pazarbasioglu, 1995. "The Nordic Banking Crises: Pitfalls in Financial Liberalization?," IMF Working Papers 1995/061, International Monetary Fund.
    4. Sachs, Jeffrey & Tornell, Aaron & Velasco, Andres, 1995. "The Collapse of the Mexican Peso: What Have We Learned?," Working Papers 95-22, C.V. Starr Center for Applied Economics, New York University.
    5. S. R. Osmani, 1993. "Is There a Conflict between Growth and Welfarism?: The Tale of Sri Lanka," WIDER Working Paper Series wp-1993-109, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. David Barkin, 2015. "Looking Askance at Picketty’s Inequality from the Third World," Review of Radical Political Economics, Union for Radical Political Economics, vol. 47(4), pages 566-571, December.
    2. Popov, Vladimir, 2001. "Currency crises in Russia and other transition economies," MPRA Paper 28117, University Library of Munich, Germany.

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