Abstract
The following three conditions were mainly responsible for the constraints in the Mexican economy in the 1980s, determining its behavior after 1982:
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First of all the foreign debt, which called for service payments of US $19.4 billion in 1982 and US $13.7 billion in 1987. Interest and debt amortisation payments accounted for an average capital outflow of between 5 and 6 per cent of gross domestic product (GDP) in that period.
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Second, a severe drop in trade due to the low prices of oil during that period. According to Ministry of Treasury (Secretaría de Hacienda) estimates, this meant a loss of income amounting to US $40 billion in the last six years.
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Finally, because of the debt, adjustment policies that were geared to increase export income and decrease demand and public deficit.
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Bibliography
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© 1992 Ennio Rodríguez
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Villarreal, R. (1992). Cross-conditionality: The Case of Mexico and the World Bank. In: Rodríguez, E., Griffith-Jones, S. (eds) Cross-Conditionality Banking Regulation and Third-World Debt. Macmillan International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-12416-9_7
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DOI: https://doi.org/10.1007/978-1-349-12416-9_7
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