Mexican meltdown: States, markets and post-NAFTA financial turmoil

Third World Quarterly

Volumn 17, Issue 5, 1996, Pages 975-988

  Cameron, Maxwell A ^a   Aggarwal, Vinod K ^b  

^a UNIVERSITY OF NOTRE DAME   (United States)

^b UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

AID PACKAGE; DEVELOPING COUNTRY; ECONOMIC CRISIS; FINANCIAL CRISIS; INTERNATIONAL AID; NATIONAL ECONOMY; POLITICAL ECONOMY;

MEXICO;

EID: 0030404495     PISSN: 01436597     EISSN: None     Source Type: Journal    
DOI: 10.1080/01436599615218     Document Type: Article

References (57)

1. W Glagall, 'Welcome to the new world order finance', Business Week, 13 February 1995, p 38. According to The Economist, $40 billion amounts to 10% of Mexican GDP, and twice what the USA spends on foreign aid every year. 'Rescuing the sombrero', The Economist, 21 January 1995, p 18.
2. W Glagall, 'Welcome to the new world order finance', Business Week, 13 February 1995, p 38. According to The Economist, $40 billion amounts to 10% of Mexican GDP, and twice what the USA spends on foreign aid every year. 'Rescuing the sombrero', The Economist, 21 January 1995, p 18.
3. W Glagall, 'Welcome to the new world order finance', Business Week, 13 February 1995, p 38. According to The Economist, $40 billion amounts to 10% of Mexican GDP, and twice what the USA spends on foreign aid every year. 'Rescuing the sombrero', The Economist, 21 January 1995, p 18.
4. K Polanyi, The Great Transformation, Boston, MA: Beacon, 1944, p 141.
5. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
6. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
7. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
8. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
9. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
10. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
11. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
12. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
13. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
14. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
15. See SJ Burki & S Edwards 'Latin America after Mexico: quickening the pace', paper prepared for the World Bank's First Annual Conference on Development in Latin America and the Caribbean, Rio de Janeiro, 12-13 June 1995; J Castañeda, 'Mexico's circle of misery', Foreign Affairs, Vol 75, No 4, 1996, pp 92-105; L Conger, 'Mexico: the failed fiesta', Current History, Vol 94, No 590, 1995, pp 102-107; E Dussel Peters, 'La crisis mexicana: ¿Ultimas diez lecciones?', Nexos, April 1996, pp 13-15; S Edwards, Crisis and Reform in Latin America: From Despair to Hope, Washington, DC: World Bank, 1995; R Grinspun & MA Cameron, 'NAFTA and the political economy of Mexico's external relations', Latin American Research Review, Vol. 31, No. 3, 1996, pp. 161-188; R Grinspun et al, 'Economic reforms and political democratization in Mexico: reevaluating basic tenets of Canadian foreign policy', in MA Cameron & MA Molot, eds, Democracy and Foreign Policy: Canada Among Nations, 1995, Ottawa: Carleton University Press, 1995; M Schettino, Los costos del miedo: La devaluatión de 1994/1995, Mexico: Grupo Editorial Iberoamericana, 1995; L Summers, 'Summers on Mexico: ten lessons to learn', The Economist, 23 December 1995-5 January 1996; J Warnock, 'The Mexican disaster', The Canadian Forum, Vol 73, No 838, April 1995, pp 6-7; and S Weintraub, 'The Mexican economy: life after devaluation', Current History, Vol 94, No 590, 1995, pp 108-113.
16. R Boyer & D Drache, eds, States Against Markets: The limits of globalization, London: Routledge, 1996, pp 15-16.
17. The Economist, 7 October 1995, pp 15-16.
18. Warning signs were detected by R Dornbusch & A Werner, 'Mexico: stabilization and no growth', Brookings Papers on Economic Activity, No 1, 1994, pp 253-315. For historical examples of similar speculative bubbles, see C Kindleberger, Manias, Panics, and Crashes: A History of Financial Crises, New York: Basic Books, 1989.
19. Warning signs were detected by R Dornbusch & A Werner, 'Mexico: stabilization and no growth', Brookings Papers on Economic Activity, No 1, 1994, pp 253-315. For historical examples of similar speculative bubbles, see C Kindleberger, Manias, Panics, and Crashes: A History of Financial Crises, New York: Basic Books, 1989.
20. J Castañeda, 'The devaluation: a political reflection', Current History, Vol 94, No 590, 1995, p 117.
21. For details of corporate losses, see Financial Post, 5 January 1995, p 6; New York Times, 11 January 1995; Rudy Luukko, 'Lessons of the Mexico massacre', Financial Times of Canada, 7-13 January 1995, p 8; 'Power to the plutocrats', Institutional Investor, February 1995; and A Willis, 'Pounded by the peso's fall', Maclean's, 3 April 1995, p 38.
22. For details of corporate losses, see Financial Post, 5 January 1995, p 6; New York Times, 11 January 1995; Rudy Luukko, 'Lessons of the Mexico massacre', Financial Times of Canada, 7-13 January 1995, p 8; 'Power to the plutocrats', Institutional Investor, February 1995; and A Willis, 'Pounded by the peso's fall', Maclean's, 3 April 1995, p 38.
23. For details of corporate losses, see Financial Post, 5 January 1995, p 6; New York Times, 11 January 1995; Rudy Luukko, 'Lessons of the Mexico massacre', Financial Times of Canada, 7-13 January 1995, p 8; 'Power to the plutocrats', Institutional Investor, February 1995; and A Willis, 'Pounded by the peso's fall', Maclean's, 3 April 1995, p 38.
24. For details of corporate losses, see Financial Post, 5 January 1995, p 6; New York Times, 11 January 1995; Rudy Luukko, 'Lessons of the Mexico massacre', Financial Times of Canada, 7-13 January 1995, p 8; 'Power to the plutocrats', Institutional Investor, February 1995; and A Willis, 'Pounded by the peso's fall', Maclean's, 3 April 1995, p 38.
25. For details of corporate losses, see Financial Post, 5 January 1995, p 6; New York Times, 11 January 1995; Rudy Luukko, 'Lessons of the Mexico massacre', Financial Times of Canada, 7-13 January 1995, p 8; 'Power to the plutocrats', Institutional Investor, February 1995; and A Willis, 'Pounded by the peso's fall', Maclean's, 3 April 1995, p 38.
26. N Lustig, 'Mexico: the slippery road to stability', Brookings Review, Spring 1996, pp 4-9. All other figures from Instituto Nacional de Estadistica, Geografía e Informática (INEGI), 'Producto interno bruto real 1991-1996', and Banco de México y Secretaría de Hacienda, 'Mexico: principales indicadores económicos 1996'. Available on Internet: http:www.QUICKLINK.COM/MEXICO/TABLASEC.
27. These observations are based on interviews with a senior official of the Bank of Canada, 17 May 1995 and 28 February 1995.
28. According to the Federal Reserve Bank of the United States, Mexican investors increased their deposits in US banks from $12.6 billion to 16.8 billion in 1994 - in spite of a massive withdrawal of over $6 billion from US institutions by the Bank of Mexico. See 'Fuga de 4 200 mdd a EU en enero-fedrero', La Jornada, 11 July 1995. Figures on savings from President Zedillo's 1995 address to the nation, reported in 'La ciudadanía, motor del avance politico: Zedillo', La Jornada, 2 September 1995. All other figures are from the Department of Finance (Canada) 'Canada-Mexico finance executive seminar', Summary Notes, Ottawa: National Arts Centre, 1995.
29. According to the Federal Reserve Bank of the United States, Mexican investors increased their deposits in US banks from $12.6 billion to 16.8 billion in 1994 - in spite of a massive withdrawal of over $6 billion from US institutions by the Bank of Mexico. See 'Fuga de 4 200 mdd a EU en enero-fedrero', La Jornada, 11 July 1995. Figures on savings from President Zedillo's 1995 address to the nation, reported in 'La ciudadanía, motor del avance politico: Zedillo', La Jornada, 2 September 1995. All other figures are from the Department of Finance (Canada) 'Canada-Mexico finance executive seminar', Summary Notes, Ottawa: National Arts Centre, 1995.
30. According to the Federal Reserve Bank of the United States, Mexican investors increased their deposits in US banks from $12.6 billion to 16.8 billion in 1994 - in spite of a massive withdrawal of over $6 billion from US institutions by the Bank of Mexico. See 'Fuga de 4 200 mdd a EU en enero-fedrero', La Jornada, 11 July 1995. Figures on savings from President Zedillo's 1995 address to the nation, reported in 'La ciudadanía, motor del avance politico: Zedillo', La Jornada, 2 September 1995. All other figures are from the Department of Finance (Canada) 'Canada-Mexico finance executive seminar', Summary Notes, Ottawa: National Arts Centre, 1995.
31. N Lustig, 'La crisis del peso: lo previsible y la sorpresa', Comercio Exterior, May 1995, p 375.
32. J Ros, 'La crisis mexicana: causas, perspectivas, lecciones', Nexos, May 1995, p 46.
33. J Sachs et al, 'The collapse of the peso: what have we learned?'. Working Paper Series, The Center for International Affairs, Harvard University, 1995, Table 9.
34. Banco de México, The Mexican Economy (Annual Report) 1995, Mexico, DF, June 1995, pp 222-223.
35. These quotes are from Craig Torres, 'How Mexico's behind-the-scenes tactic and a secret pact averted market panic', Wall Street Journal, 28 March 1994, p A6.
36. Craig Torres, 'Some mutual funds wield growing clout in developing nations: as investments abroad rise managers take on role similar to banks, IMF', Wall Street Journal, 14 June 1994, p 1.
37. 'Se defiende Aspe de quienes lo acusan de no haber querido devaluar', El Economista, 14 July 1995, p 26. A similar meeting had been held in September 1994, in which Guillermo Ortiz had favoured a devaluation, and no action was taken.
38. A Oppenheimer, Bordering on Chaos: Guerrillas, Stockbrokers, Politicians, and Mexico's Road to Prosperity, Boston, MA: Little, Brown, 1996, p 219. For a detailed account, see MA Cameron, 'Crisis or crises in Mexico?', Third World Resurgence, No 57, May 1995.
39. A Oppenheimer, Bordering on Chaos: Guerrillas, Stockbrokers, Politicians, and Mexico's Road to Prosperity, Boston, MA: Little, Brown, 1996, p 219. For a detailed account, see MA Cameron, 'Crisis or crises in Mexico?', Third World Resurgence, No 57, May 1995.
40. An official in the Mexican Ministry of Foreign Affairs suggested that the generousness of the bail-out sent out a signal that the crisis was more serious than it really was. Mexico City, March 1995.
41. N Nash, 'Western allies rebuff Clinton in Mexico vote: 6 Europeans abstain on support at IMF', New York Times, 3 February 1995, p A1,A6.
42. See IMF, 'MMF approves US $17.8 billion stand-by credit for Mexico', press release No 95-10, 1 February 1995
43. We are grateful to Lawrence Whitehead for these observations.
44. 'Band-aid', The Economist, 25 February 1995, p 79.
45. Figures from Banco de México and INEGI.
46. R Keohane, 'Neoliberal institutionalism: a perspective on world politics', in Keohane, International Institutions and State Pawer, Boulder, CO: Westview 1989 pp 1-20.
47. Cited in MI Asaria, 'Mexico: panacea in peril', Third World Resurgence, No 55, March 1995, p 15
48. This point is made in Report of an Independent Task Force, Lessons of the Mexican Peso Crisis, New York: Council on Foreign Relations, 1996. The members of the Task Force mainly represented Wall Street firms.
49. General Accounting Office, Mexico's Financial Crisis: Origins, Awareness, and Initial Efforts to Recover, Wasington, DC: Government Printing Office, 1996. According to the report, although officials at the Federal Reserve and the Treasure expressed concerns about Mexico's exchange rate management, neither anticipated a crisis of the mangntide that occurred.
50. On the history of US-Mexican debt negotiations, see VK Aggarwal, Debt Games: Strategic Interaction in International Debt Rescheduling, New York: Cambridge University Press, 1996.
51. US Congress, House Committee on Banking and Financial Services US and international responce to the Mexican financial crisis, Washington, DC: Government Printing Office, 1995. See, for examples, comments by Secretary of the Treasury Robert Rubin and Secretary of State Warren Christoper, pp 10, 13. University Press, 1992.
52. J Castañeda, The Mexican Shock: Its Meaning for the US, New York: The New Press, 1995, 183-84.
53. A Alvarez Béjar, 'Mexico 1995: Entir los desequilibrios macroeconomicos y la crisis política', Investigación Económica, No 212, 1995, pp 197-219. On 'neostructuralism', see D Green, 'Latin America: neoliberal failure and the search for alternatives', Third World Quarterly, Vol 17, No 1, 1996, pp 109-122.
54. A Alvarez Béjar, 'Mexico 1995: Entir los desequilibrios macroeconomicos y la crisis política', Investigación Económica, No 212, 1995, pp 197-219. On 'neostructuralism', see D Green, 'Latin America: neoliberal failure and the search for alternatives', Third World Quarterly, Vol 17, No 1, 1996, pp 109-122.
55. On income distribution, see J López, 'El derrumbe de una ficción. Evolución reciente,crisis y perspectivas de la economia mexicana', Investigación Económica, No 212, 1995, p 11; and M Pastor Jr & C Wise, 'Western hemispheric integration: free trade is not enough', SAIS Review, Summer-Fall 1995
56. On income distribution, see J López, 'El derrumbe de una ficción. Evolución reciente,crisis y perspectivas de la economia mexicana', Investigación Económica, No 212, 1995, p 11; and M Pastor Jr & C Wise, 'Western hemispheric integration: free trade is not enough', SAIS Review, Summer-Fall 1995
57. This is related to an explosion of borrowing associated with the emergence of a deregulated system of globalised finance. The OECD estimates that 'gross borrowing increased in 1994 to US$955 billion, more than twise the leval in 1990'. See the Report of the House of Commons Standing Committee on Foreign Affairs and International Trade on the Issues of International Financial Institutions Reforms for the Agenda of the June 1995 G-7 Halifax Summit, From Bretton Woods to Halifax and Beyond: Twards a 21st Summit for the 21st Century Challenge, Ottawa: House of Commons, Canada, 1995, p 46.