Why is 'The Market' so Unforgiving? Reflections on the Tequilazo
| dc.contributor.author | Calvo, Guillermo A. | |
| dc.date.accessioned | 2007-01-18T19:50:43Z | |
| dc.date.available | 2007-01-18T19:50:43Z | |
| dc.date.issued | 1996-09-21 | |
| dc.description.abstract | Mexico’s financial debacle and its impact on other emerging markets (the Tequila effect) has raised many fundamental questions. Mexico achieved fiscal balance in 1993, undertook several fundamental market-oriented reforms, signed a free trade agreement with a very large market (the NAFTA), became a member of the OECD, and was hailed by international institutions as a paramount example of successful reform. Yet, the December 20, 1994, devaluation brought the economy down like a house of cards. Output fell by more than 7 percent in 1995, the current account deficit sharply swung from about 8 percent of GDP in 1994 to zero, and investors turned their noses away from high-yield Mexican public debt even though the international community had plunked about $50 billion in a rescue package. In addition, Mexican problems quickly spread around the world’s emerging markets, including those exhibiting long and enviable track records. | en |
| dc.format.extent | 172135 bytes | |
| dc.format.mimetype | application/pdf | |
| dc.identifier.uri | http://hdl.handle.net/1903/4031 | |
| dc.language.iso | en_US | en |
| dc.relation.isAvailableAt | Digital Repository at the University of Maryland | en_us |
| dc.relation.isAvailableAt | Economics Department | en_us |
| dc.relation.isAvailableAt | College of Behavioral and Social Sciences | en_us |
| dc.relation.isAvailableAt | University of Maryland (College Park, Md.) | en_us |
| dc.subject | tequila effect | en |
| dc.subject | tequilazo | en |
| dc.subject | balance-of-payments crises | en |
| dc.subject | output collapse | en |
| dc.subject | wage stickiness | en |
| dc.subject | price stickiness | en |
| dc.subject | pro-cyclical fiscal adjustment | en |
| dc.title | Why is 'The Market' so Unforgiving? Reflections on the Tequilazo | en |
| dc.type | Article | en |