Abstract
In August 1982, the Government of Mexico announced that it could no longer honour the country’s foreign debt obligations and would need emergency assistance. Within months, fourteen Latin American countries followed suit. This was the beginning of what has come to be known as the ‘debt crisis’ of developing countries.
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Notes and References
Data sources for national income accounts and balance of payments, International Financial Statistics, IMF; for fiscal data, Banco de Mexico, Annual Report, GFS, IMF, and Secretaria de Hacienda y Credito Publico, Estadisticas de Finanzas Publicas; and for External debt data, World Debt Tables, IBRD, Inter-American Development Bank (1985) and Cline (1984).
Mexico’s presidents serve one term of six years. Since the 1920s all presidents have been members of the ruling party, PRI. The presidential candidate of PRI is normally nominated by the outgoing president.
This method is employed by Dornbusch (1984) although he does not provide a discussion of Mexico’s capital flight and debt crisis. Similar methods are discussed in Cline (1984) and Khan and Haq (1985).
Kraft, pp. 19–20.
Kraft, op. cit., pp. 21–3.
Kraft, op. cit., pp. 50–51.
Cline, pp. 96–100.
Banco de Mexico, Informe Annual, various issues, Mexico City.
Cline, R.W., ‘Systematic Risk and Policy Response’, Institute for International Economics, Washington DC, 1984.
Dornbusch, R., ‘External Debt, Budget Deficits and Disequilibrium Exchange Rates’, Working paper no. 1336, National Bureau of Economic Research, Cambridge, Massachusetts, 1984.
Gil, F., ‘Mexico’s Path from Stability to Inflation’ World Economic Growth Problems, Institute for Contemporary Studies, Mexico City, 1983.
Inter-American Development Bank, Economic and Social Progress in Latin America, External Debt: Crisis and Adjustment, Washinghton DC, 1985.
International Bank for Reconstruction and Development, World Debt Tables, various issues, Washington DC.
International Monetary Fund, International Financial Statistics, various issues, Washington DC.
International Monetary Fund, Government Financial Statistics, various issues, Washington DC.
Jorge, A.J., Salazar-Carillo, and R.P. Higonnet (eds), Foreign Debt and Latin American Economic Development, Pergamon Press, New York, 1983.
Jorge, A.J., Salazar-Carrillo and R.P. Higonnet (eds), External Debt and Development Strategy in Latin America, New York, Pergamon Press, 1985.
Katz, M., ‘Government Policy, External Public Indebtedness and Debt Service’. Working paper IMF, Washington DC, 1982.
Khan, M.S. and M. Haq, ‘Foreign Borrowing and Capital Flight: A Formal Analysis’, IMF Staff Paper, Washington DC, 1985.
Kraft, J., The Mexican Rescue, Group of Thirty, New York, 1984.
Philip, G., ‘Mexico: Learning to Live with Crisis’, in E. Duran (ed.), Latin America and the World Recession, Cambridge University Press, 1985.
Riding, A., Distant Neighbors: Portrait of the Mexicans, Alfred Knopf, New York, 1984.
Sachs, J., ‘LDC Debt in the 1980s: Risk and Reform’, in P.Wachtel (ed.), Crises in Economic and Financial Structure, Lexington Books, 1982.
Secretaria de Hacienda y Credito Publico, Estadisticas de Finanzas Publicas, 1985.
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© 1989 H. W. Singer and Soumitra Sharma
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Katz, M. (1989). Mexico: Anatomy of a Debt Crisis. In: Singer, H.W., Sharma, S. (eds) Economic Development and World Debt. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20044-3_28
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