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The Latest IMF-Sponsored Stabilization Program: Does It Represent a Long-Term Solution for Mexico’s Economy?

Published online by Cambridge University Press:  02 January 2018

Miguel D. Ramírez
Miguel D. Ramírez*
Affiliation:
Department of Economics at Trinity College, Hartford (CT)
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Extract

On 20 December 1994, the newly inaugurated government of President Ernesto Zedillo shattered Mexico’s façade of modernity by finding itself, first, forced to devalue the currency by 14% (in real terms), and then, only a few days later and under intense pressure from speculators (sacadolares), to allow the peso to float freely against the dollar. By the end of December, the value of the peso vis-à-vis the dollar had dropped by more than 30%, and the country had lost between $7 and $8 billion in foreign exchange reserves.

Type
Research Article
Information
Journal of Interamerican Studies and World Affairs , Volume 38 , Issue 4 , Winter 1996 , pp. 129 - 156
Copyright
Copyright © University of Miami 1996

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