In this paper, we derive three lessons from Mexico's experience. First, deep reforms like trade liberalization are not … elites breaks down. In the case of Mexico, this happened during a fiscal crisis, when some groups tried to displace other …, Mexico limited radical liberalization to the manufacturing sector. The government has only recently begun to undertake …

In the first quarter of 1995 Mexico found itself in the grip of an intense financial panic. Foreign investors fled … Mexico despite very high interest rates on Mexican securities, an undervalued currency, and financial indicators that pointed … therefore financially vulnerable. Illiquidity exposed Mexico to a self-fulfilling panic …

In this paper, we derive three lessons from Mexico's experience. First, deep reforms like trade liberalization are not … elites breaks down. In the case of Mexico, this happened during a fiscal crisis, when some groups tried to displace other …, Mexico limited radical liberalization to the manufacturing sector. The government has only recently begun to undertake …

Mexico, a prominent liberalizer. We argue that liberalization is beneficial despite the occurrence of crises. First, we show … imperfections, liberalization leads to faster growth and, as a by-product, to financial fragility. Third, comparing Mexico with this …