Título del libro: Elgar Encyclopedia Of Financial Crises
Título del capítulo: The lost decade and the 1982 debt crisis in Mexico
JUAN CARLOS MORENO BRID; JOAQUIN SANCHEZ GOMEZ;
Autores externos:
Idioma:
Año de publicación:
2023
Palabras clave:
Balance of payments; Debt crisis; Financial crisis; Mexico; Trade liberalization
Resumen:
After a period characterized by significant economic dynamism (the 1950s to 1970s), the 1980s were inaugurated in the context in which the fall in the international price of oil caused the Mexican government not to have the solvency to face its short-term debt repayments. This situation caused a huge decrease in GDP in 1982 and a series of economic policy measures took place that would change the course of the development agenda. The government reduced its public spending in a large number of budget items, mainly in investment. The industrial policy was completely set aside, and the privatization of state-owned companies began to increase public income to solve the fiscal deficit immediately. Policy was also highly influenced by the mantra that the government is inefficient in the production process and, therefore, the best decision should be to reduce its participation. It was believed that trade liberalization could induce a structural change that would allow the Mexican economy to diversify. The liberalization strategy began with the ratification of the General Agreement on Tariffs and Trade and later the negotiation of multiple free trade agreements with the world, the most important of them with the United States and Canada. As a result of these macro adjustments, the Mexican economy did not grow for an entire decade, and the performance of the GDP is insufficient to solve the main problems that remain present, such as the high levels of poverty and inequality. © Sara Hsu 2023. All rights reserved.
Entidades citadas de la UNAM:
ISBN:
9781800377363
Editorial:
Edward Elgar Publishing Ltd. Nombre de la publicación:
The lost decade and the 1982 debt crisis in Mexico
Página inicial:
424
Página final:
425
