The 1994 Mexican Economic Crisis : The Role of Government Expenditure and Relative Prices /

This paper discusses the role of a country's fiscal stance in weakening the financial underpinnings of an open economy with a quasi-fixed nominal exchange rate, even where the overall fiscal deficit remains unchanged, or even narrows. The paper cites the role of expanding government operations...

Mô tả đầy đủ

Chi tiết về thư mục
Tác giả chính: Kalter, Eliot
Tác giả khác: Ribas, Armando
Định dạng: Tạp chí
Ngôn ngữ:English
Được phát hành: Washington, D.C. : International Monetary Fund, 1999.
Loạt:IMF Working Papers; Working Paper ; No. 1999/160
Truy cập trực tuyến:Full text available on IMF
Miêu tả
Tóm tắt:This paper discusses the role of a country's fiscal stance in weakening the financial underpinnings of an open economy with a quasi-fixed nominal exchange rate, even where the overall fiscal deficit remains unchanged, or even narrows. The paper cites the role of expanding government operations in reducing the relative price of traded goods. A marked increase in government expenditure and taxation is associated with increased production costs, excess demand for nontraded goods, and a deterioration in the financial health of the traded goods sector. The paper demonstrates that, in contrast to the current economic situation in Mexico, the period leading to the 1994 crisis closely parallels these stylized facts.
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Mô tả vật lý:1 online resource (23 pages)
Định dạng:Mode of access: Internet
số ISSN:1018-5941
Truy cập:Electronic access restricted to authorized BRAC University faculty, staff and students