Balance-of-payments constrained economic growth: the case of Mexico

Juan Carlos Moreno-Brid ()

Banca Nazionale del Lavoro Quarterly Review, 1998, vol. 51, issue 207, 413-433

Abstract: An analytical model for balance-of-payment constraints is developed to analyse the economic crisis which swept the entire Mexican region during the early 1980s. Analytical results suggest that a modification of the long-term income multipliers of the proposed framework may be effected by implementing a long-term constant ratio of the current account to nominal gross domestic product. It is further shown that Mexico's economic instability was largely caused by the inadequacy of foreign exchange resources necessary in driving domestic growth.

Keywords: Economics; Research and Development in the Social Sciences and Humanities; Models; Mexico (search for similar items in EconPapers)
JEL-codes: E01 G01 (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (19)

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