Balance-of-payments constrained economic growth: the case of Mexico
An analytical model for balance-of-payment constraints is developed to analyse the economic crisis which swept the entire Mexican region during the early 1980s. Analytical results suggest that a modification of the long-term income multipliers of the proposed framework may be effected by implementin...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
1998-12-01
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| Series: | PSL Quarterly Review |
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| Online Access: | http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/10604/10488 |
| Summary: | An analytical model for balance-of-payment constraints is developed to analyse the economic crisis which swept the entire Mexican region during the early 1980s. Analytical results suggest that a modification of the long-term income multipliers of the proposed framework may be effected by implementing a long-term constant ratio of the current account to nominal gross domestic product. It is further shown that Mexico's economic instability was largely caused by the inadequacy of foreign exchange resources necessary in driving domestic growth. |
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| ISSN: | 2037-3635 2037-3643 |