Mexican stabilization plan: 1982-1989

Elena Landau ()

Brazilian Journal of Political Economy, 1991, vol. 11, issue 4, 477-499

Abstract: The paper analyses economic policy measures related to the 1982-89 Mexicanstabilization plan. It shows that the first phase was predominantly orthodox. In a second step,a deindexation policy was followed, which kept prices and wages virtually constant duringapproximately two years. The results so far have been significant reduction of inflationrates, the main cost being a loss of foreign exchange reserves and a substantial decrease ofreal wages. The Mexican stabilization experiment is usually presented as a successful caseof adjustment to the external sector crisis and inflation reduction. A decisive test of theprogram, however, will take place when prices and wages were liberalized. JEL Classification: E31.

Keywords: Inflation; stabilization (search for similar items in EconPapers)
Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:11:y:1991:i:4:p:477-499:id:1478

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