Causes and Lessons of the Mexican Peso Crisis
The speed and the massive scale of the financial crisis that followed the fairly small, initial devaluation of the Mexican peso in December 1994 started an important debate on the causes of this crisis, its large scale and its international consequences. To what extent was the Mexican peso crisis different from previous crises, and therefore should be characterized, as the IMF Managing Director had done (Camdessus, 1995a), as ‘the first major crisis of the 21st century’? What are the main elements which make this crisis different, and what are the elements of continuity with previous crises, suffered both by Mexico and by other countries?
KeywordsExchange Rate Monetary Policy Current Account Real Exchange Rate Mutual Fund
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