In 1982, Mexico faced a balance of payments crisis, as rising interest rates and falling oil revenues made it … currency swap facilities that the US government used to provide dollar funding to the Bank of Mexico (BoM) during this crisis … International Monetary Fund (IMF) funding that US and Mexican officials hoped would address Mexico’s macroeconomic problems. On …

conditions in Mexico, appreciate the peso/dollar exchange rate, lower the sovereign risk premium and forex volatility, and … increase stock prices, real activity and prices in Mexico. In contrast, restrictive US monetary policy shocks tighten financial … conditions, and reduce real activity and prices in Mexico. …