NAFTA and Mexico's current economic crisis: Short-run and long-run perspectives
- 1 December 1995
- journal article
- Published by Taylor & Francis in The Social Science Journal
- Vol. 32 (4) , 375-388
- https://doi.org/10.1016/0362-3319(95)90027-6
Abstract
Policy-makers in both Mexico and the U.S. reacted to the economic crisis which began in Mexico in December, 1994 as if it were a problem of short-run financial liquidity. The argument presented in this article is that Mexico's current crisis has its origins in long-standing, fundamental problems of the Mexican economy. These long-run problems include: massive external debt, a severely skewed income distribution, inadequate job creation, low productivity per worker and lack of investment in infrastructure. The short-run policy response will not address the long-run problems.Keywords
This publication has 0 references indexed in Scilit: