Tres trampas: sobre los orígenes de la crisis económica mexicana de 1994
ABSTRACT In all developing countries facing economic reform there are political and economic obstacles to such a radical change. In the case of Mexico, however, during the Salinas administration (1988-94), a new economic crisis exploded after serious changes had taken place and the economy seemed to...
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| Format: | Article |
| Language: | English |
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Editora 34
2022-06-01
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| Series: | Brazilian Journal of Political Economy |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31571998000400623&lng=es&tlng=es |
| _version_ | 1818470517847359488 |
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| author | CARLOS ELIZONDO MAYER-SERRA |
| author_facet | CARLOS ELIZONDO MAYER-SERRA |
| author_sort | CARLOS ELIZONDO MAYER-SERRA |
| collection | DOAJ |
| description | ABSTRACT In all developing countries facing economic reform there are political and economic obstacles to such a radical change. In the case of Mexico, however, during the Salinas administration (1988-94), a new economic crisis exploded after serious changes had taken place and the economy seemed to have stabilized and was prepared for continuous growth under a new development strategy. By the end of the six-year presidential period, the old cycle of boom and bust returned. This article seeks to understand why the Mexican economy has ended in two of the last three presidential periods with an overvalued exchange rate, high deficits of the current account, unsustainable short-term debt, and a financial crisis. The article focuses on the Salinas administration, but shows that a similar logic led to economic crisis in the Echeverría (1970-76) and López Portillo (1976-82) administrations. It is argued that the 1994 crisis is the result of three traps: an international context which allowed a massive entrance of capital flows, the ideology of the state elite, and the incentives provided by the institutional framework. These three traps were also present in the previous two crises. |
| first_indexed | 2024-04-13T21:38:04Z |
| format | Article |
| id | doaj.art-866dd6c7e5124262b077f9dd610f2f51 |
| institution | Directory Open Access Journal |
| issn | 1809-4538 |
| language | English |
| last_indexed | 2024-04-13T21:38:04Z |
| publishDate | 2022-06-01 |
| publisher | Editora 34 |
| record_format | Article |
| series | Brazilian Journal of Political Economy |
| spelling | doaj.art-866dd6c7e5124262b077f9dd610f2f512022-12-22T02:28:52ZengEditora 34Brazilian Journal of Political Economy1809-45382022-06-0118462364310.1590/0101-31571998-1271Tres trampas: sobre los orígenes de la crisis económica mexicana de 1994CARLOS ELIZONDO MAYER-SERRAABSTRACT In all developing countries facing economic reform there are political and economic obstacles to such a radical change. In the case of Mexico, however, during the Salinas administration (1988-94), a new economic crisis exploded after serious changes had taken place and the economy seemed to have stabilized and was prepared for continuous growth under a new development strategy. By the end of the six-year presidential period, the old cycle of boom and bust returned. This article seeks to understand why the Mexican economy has ended in two of the last three presidential periods with an overvalued exchange rate, high deficits of the current account, unsustainable short-term debt, and a financial crisis. The article focuses on the Salinas administration, but shows that a similar logic led to economic crisis in the Echeverría (1970-76) and López Portillo (1976-82) administrations. It is argued that the 1994 crisis is the result of three traps: an international context which allowed a massive entrance of capital flows, the ideology of the state elite, and the incentives provided by the institutional framework. These three traps were also present in the previous two crises.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31571998000400623&lng=es&tlng=esCurrency crisiseconomic history of MexicoMexican peso crisis |
| spellingShingle | CARLOS ELIZONDO MAYER-SERRA Tres trampas: sobre los orígenes de la crisis económica mexicana de 1994 Brazilian Journal of Political Economy Currency crisis economic history of Mexico Mexican peso crisis |
| title | Tres trampas: sobre los orígenes de la crisis económica mexicana de 1994 |
| title_full | Tres trampas: sobre los orígenes de la crisis económica mexicana de 1994 |
| title_fullStr | Tres trampas: sobre los orígenes de la crisis económica mexicana de 1994 |
| title_full_unstemmed | Tres trampas: sobre los orígenes de la crisis económica mexicana de 1994 |
| title_short | Tres trampas: sobre los orígenes de la crisis económica mexicana de 1994 |
| title_sort | tres trampas sobre los origenes de la crisis economica mexicana de 1994 |
| topic | Currency crisis economic history of Mexico Mexican peso crisis |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31571998000400623&lng=es&tlng=es |
| work_keys_str_mv | AT carloselizondomayerserra trestrampassobrelosorigenesdelacrisiseconomicamexicanade1994 |