Mexico's crisis: financial modernisation and financial fragility

The work seeks to analyse Mexico's recent exchange-rate crisis in relation to the debate on financial modernisation and external financial fragility. The author reviews some key features of Mexico's 1988-1994 economic recovery before analysing some aspects of the country's evolution in the light of the financial modernisation debate. An explanation of the crisis in which Mexico's external financial fragility is emphasised is provided. Finally, the relationship between financial modernisation and the external crisis is examined. A number of conclusions are reached about Mexico's experiences in attempting to achieve satisfactory and sustainable growth rates.