From the Debt Crisis toward Economic Stability: An Analysis of the Consistency of Macroeconomic Policies in Mexico
Summary:
This paper uses a simple framework based on the government budget constraint to analyze the consistency of macroeconomic policies undertaken in Mexico during the period 1978 to mid-1991. It was found that the interaction between the actual implementation of economic policies and economic agents’ perceptions about the sustain-ability of those policies can account, to a large extent, for the behavior of key macroeconomic variables during the period under study. The paper also highlights the costs of adjustment involved in the most recent Mexican stabilization program arising from concerns about the sustainability of the announced policies.
Series:
Working Paper No. 1992/017
Subject:
Balance of payments Capital outflows Exchange rates Financial services Fiscal stance Foreign exchange Government debt management Inflation Prices Public financial management (PFM) Real interest rates
English
Publication Date:
March 1, 1992
ISBN/ISSN:
9781451843453/1018-5941
Stock No:
WPIEA0171992
Pages:
44
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