January 1996

The Risks and Implications of External Financial Shocks: Lessons from Mexico

Edwin M. Truman

Abstract:

The lessons from the 1994-95 Mexican peso crisis are examined from the perspective of creditors and their markets, countries that are recipients of large capital inflows, and the functioning of the international system as a whole. From each of these perspectives, recent changes in the financial world are sketched, lessons from the Mexican experience are derived, and implications for policies are considered.

PDF: Full Paper

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Last Update: February 19, 2021