Mexico's Economy: the crisis, the recovery and the policy optionsJulio López Gallardo ()
Economia, 2000, vol. 1, issue 2, pages 221-239 Abstract: The economic policies implemented in Mexico to confront the December 1994 crisis, even though instrumental in coping with the external deficit caused a strong recession coupled with falling real wages and a worsening in income distribution. These effects of the adjustment strategy stem from its contractionary impact on aggregate demand and supply. The recovery from the crisis was not the consequence of the strategy implemented, but rather of the evolution of the international economy as well as some modifications in the fiscal policy stance. An alternative economic strategy, based on subsidizing domestic production, would stimulate the recovery by promoting utilization of idle productive capacities, and moderate inflationary pressures. Besides that, selective fiscal and monetary policies must be implemented, and a mechanism to control capital flight has to be devised. Keywords: Economic Adjustment; Economic Crisis; Economic Policy; Demand Management; Alternative Strategies (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Persistent link: http://EconPapers.repec.org/RePEc:anp:econom:v:1:y:2000:i:2:p:221-239 Ordering information: This journal article can be ordered from Access Statistics for this article Economia is edited by Joaquim Pinto de Andrade More articles in Economia from ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] |
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