Growth, external debt, and the real exchange rate in Mexico, Issue 257

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Latin America and the Caribbean Country Department II, World Bank, 1989 - Debts, External - 30 pages
Can external restraint and internal balance in Mexico be reconciled at savings and investment levels that allow satisfactory output growth? What role do fiscal policy, interest rates, oil prices, and exchange rates play? How would a cutoff from external capital markets affect output growth? This paper develops and uses an econometric model for Mexico to discuss these questions.

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