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 InfoPaper provided by Tecnológico de Monterrey, Campus Ciudad de México in its series EGAP Working Papers with number 200303.
Date of creation: Oct 1995
Date of revision:
Publication status: Published in Estudios Económicos, 1996, vol. 11, pp. 167-180.
Mexican crisis; sustainability; Mexican current account deficit;
Other versions of this item:
- José A. Núñez & Carlos M. Urzúa, 1996. "The Mexican intertemporal budget constraint: Persistent signals of an eventual collapse," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 11(2), pages 167-180.
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
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