occurred if monetary policy had been tightened. ; The author of this article asks whether Mexican policy mistakes made … devaluation of the peso inevitable, considering particularly Mexico's policy actions during 1994-as well as options Mexico did not … take. He also reviews market response to the devaluation and Mexican and U.S. government efforts to cope with its aftermath …

the vulnerability of the Mexican financial system to swings in expectations and investor confidence. ; In their view, the … Mexican financial crisis was an expectations-driven liquidity crisis that shares many similarities with the financial panics … that afflicted the U.S. economy during the late nineteenth century. The immediate cause of the Mexican crisis was political …

In Mexico the December 1994 peso devaluation provoked a profound economic downturn in that country and revealed a … fragile banking sector. Fearful that the financial system would collapse under a rising level of past due loans, the Mexican … functions to a productive role in the Mexican economy. ; The article also attempts to place the overall rescue effort within a …