The Structural Causes of the Severity of the World Crisis in Mexico

Abelardo Mariña Flores and Sergio Cámara Izquierdo

Chapter 8 in Latin America after the Financial Crisis, 2016, pp 165-191 from Palgrave Macmillan

Abstract: Abstract The 2008–2010 cyclical crisis of the Mexican economy was one of the most severe since the Great Depression. The contraction of the Mexican economy was the deepest in Latin America and among the worst in the world. Though the triggers of the crisis were to be found outside Mexico, specifically in the bursting of the mortgage bubble in the United States, the aim of this chapter is to show that the severity of the 2008–2010 crisis in Mexico, both historically and in comparison to other countries, as well as the mild subsequent recovery, has its structural roots in the precariousness of the neoliberal regime of accumulation in Mexico. We argue that this precariousness is related to the specific characteristics of the neoliberal restructuring in Mexico that have resulted in its ever-increasing dependency on the US economy, a concomitant structural weakness of the domestic market, resulting from its specific articulations to the world market and its anti-labor nature, and a systemic instability, associated with its financialized nature.

Keywords: Real Wage; Real Interest Rate; North American Free Trade Agreement; External Debt; International Reserve (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pslchp:978-1-137-48662-2_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137486622

DOI: 10.1057/9781137486622_8

Access Statistics for this chapter

More chapters in Palgrave Studies in Latin American Heterodox Economics from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().