The Mexican intertemporal budget constraint: Persistent signals of an eventual collapse
AbstractThis paper examines the sustainability of the Mexican current account deficit prior to the December 1994 crisis. It tests whether or not the Mexican economy was satisfying its intertemporal budget constraint, and finds that signals of possible trouble without a change in policies were present long before the crisis. The tests used are based on the Wickens-Uctum criterion for the sustainability of current account deficits, extended to include the case of possible interventions.
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Bibliographic InfoArticle provided by El Colegio de México, Centro de Estudios Económicos in its journal Estudios Económicos.
Volume (Year): 11 (1996)
Issue (Month): 2 ()
intertemporal budget constraint; current account; sustainability of current account deficit; Mexico;
Other versions of this item:
- Núñez, José A. & Urzúa, Carlos M., 1995. "The Mexican intertemporal budget constraint: Persistent signals of an eventual collapse," EGAP Working Papers 200303, Tecnológico de Monterrey, Campus Ciudad de México.
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
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