Publications
Publications
- April 1990 (Revised January 1994)
- HBS Case Collection
Mexico: Escaping from the Debt Crisis?
Abstract
Explores how Mexico found itself in the debt crisis that exploded in 1982 and how the de la Madrid administration (1982-88) followed by the Salinas government (1988 on) devised policies by which to resolve the macroeconomic imbalances. Describes the economic and political consequences of these policies and the tradeoffs involved. The primary lessons include: 1) an understanding of the internal and external causes of Mexico's unsustainable debt, 2) the difficulties of adjustment and the constraints policymakers face in implementing policy, and 3) the conditions under which noninflationary growth and debt repayment are sustainable.
Keywords
Citation
Shapiro, Helen. "Mexico: Escaping from the Debt Crisis?" Harvard Business School Case 390-174, April 1990. (Revised January 1994.)