Abstract
One of the major economic events in the 1990s has been the Mexican financial crisis in 1994–95. An important puzzle is how a country like Mexico, which had seemed to be pursuing reasonable policies, can shift dramatically from a path of reasonable growth before a financial crisis to a sharp decline in economic activity after a crisis occurs that is very damaging to both the economy and social fabric of the country.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Akerlof, G., “The Market for Lemons: Quality Uncertainty and the Market Mechanism,” Quarterly Journal of Economics, Vol. 84, 1970, pp. 488–500.
Berger, A.N. and G.F. Udell, “Did Risk-Based Capital Allocate Bank Credit and Cause a “Credit Crunch” in the United States?” Journal of Money Credit and Banking, 26, 3, August, 1994, pp. 585–628.
Bernanke, B.S., “Non-Monetary Effects of the Financial Crisis in the Propagation of the Great Depression,” American Economic Review, Vol. 73, 1983, pp. 257–276.
Bernanke, B.S, Gertler M., “Agency Costs, Collateral, and Business Fluctuations,” American Economic Review. Vol. 79, 1989, pp. 14–31.
Bernanke, B.S., and Gertler M., “Inside the Black Box: The Credit Channel of Monetary Policy Transmission,” Journal of Economic Perspectives. Fall 1995, 9, pp. 27–48.
Bernanke, B.S. and C. Lown, “The Credit Crunch,” Brookings Papers on Economic Activity. 2, 1991, pp. 205–239.
Calomiris, C.W. and Gorton, G. “The Origins of Banking Panics: Models, Facts and Bank Regulation” in Hubbard, R.G. (ed.), Financial Markets and Financial Crises. University of Chicago Press, Chicago, 1991, pp. 109–173.
Calomiris, C.W., Hubbard, R.G., “Firm Heterogeneity, Internal Finance, and ‘Credit Rationing’,” Economic Journal. 100, 1990, pp. 90–104.
Cecchetti, S.G., “Distinguishing Theories of the Monetary Transmission Mechanism,” Federal Reserve Bank of St. Louis Review. May/June 1995, 77, pp. 83–97.
Federal Reserve Bank of New York, “The Role of the Credit Slowdown in the Recent Recession,” Federal Reserve Bank of New York Quarterly Review. Spring, 18, #1, 1993, pp. 1–114.
Garber, Peter M. and Subir Lall., “The Role and Operation of Derivative Markets in Foreign Exchange Market Crises,” mimeo. February, Brown University, 1996.
Gertler, M., “Financial Capacity, Reliquification, and Production in an Economy with Long-Term Financial Arrangements,” University of Wisconsin, mimeo, 1988.
Greenwald, B., Stiglitz, J.E., “Information, Finance Constraints, and Business Fluctuations,” in Kahn, M., and Tsiang, S.C., eds., Finance Constraints. Expectations and Macroeconomics. Oxford University Press, Oxford, 1988, pp. 108–140.
Greenwald, B., Stiglitz, J.E., and Weiss, A., “Information Imperfections in the Capital Market and Macroeconomic Fluctuations,” American Economic Review. Vol. 74,, 1984, pp. 194–199.
Jaffee, D. and Russell, T., “Imperfect Information, Uncertainty, and Credit Rationing,” Quarterly Journal of Economics. Vol. 90, 1976, pp. 651–666.
Hancock, D., Laing, A.J. and J.A. Wilcox, “Bank Capital Shocks: Dynamic Effects on Securities, Loans and Capital,” Journal of Banking and Finance 19, 3-4, 1995, pp. 661–677.
Hausman, R. and M. Gavin, “The Roots of Banking Crises: The Macroeconomic Context,” Inter-American Development Bank mimeo, October, 1995.
Hubbard, R.G., “Is There a “Credit Channel” for Monetary Policy?,” Federal Reserve Bank of St. Louis Review. May/June 1995, 77, pp. 63–74.
Kaminsky, G.L. and C.M. Reinhart, “The Twin Crises: The Causes of Banking and Balance of Payments Problems,” Board of Governors of the Federal Reserve System, mimeo. February, 1996.
Mankiw, N.G., “The Allocation of Credit and Financial Collapse.,” Quarterly Journal of Economics, Vol. 101, 1986, pp. 455–470.
Mishkin, F.S. “Asymmetric Information and Financial Crises: A Historical Perspective,” in Hubbard, R.G., ed., Financial Markets and Financial Crises. University of Chicago Press, Chicago., 1991, pp. 69–108.
Mishkin, F.S., “Preventing Financial Crises: An International Perspective,” Manchester School. 62, 1994, pp. 1–40.
Mishkin, F.S., “The Channels of Monetary Transmission: Lessons for Policy,” Banque de France Bulletin: Digest 27, March, 1996, pp.: 33–44.
Myers, S.C., and Majluf, N.S., “Corporate Financing and Investment Decisions When Firms Have Information that Investors Do Not Have,” Journal of Financial Economics. Vol. 13, 1984, pp. 187–221.
Obstfeld, M.and K. Rogoff, “The Mirage of Fixed Exchange Rates,” Journal of Economic Perspectives. Fall, 9, 14, 1995, pp. 73–96.
Peek, J. and E.S. Rosengren, “Bank Regulation and the Credit Crunch,” Journal of Banking and Finance. 19, 2-4, 1995, pp. 679–692.
Stiglitz, J.E., and Weiss, A., “Credit Rationing in Markets with Imperfect Information,” American Economic Review. Vol. 71, 1981, pp.393–410.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1998 Springer Science+Business Media New York
About this chapter
Cite this chapter
Mishkin, F.S. (1998). The Mexican Financial Crisis Of 1994–95: An Asymmetric Information Analysis. In: Rehman, S.S. (eds) Financial Crisis Management in Regional Blocs. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-4864-1_9
Download citation
DOI: https://doi.org/10.1007/978-94-011-4864-1_9
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-6038-7
Online ISBN: 978-94-011-4864-1
eBook Packages: Springer Book Archive