The objective of this paper is to show how Mexico's strategy of financial deregulation and liberalization set the stage for the crisis that the country suffered in December 1994. The theoretical underpinning is Post-Keynesian, and more precisely, a Minsky-inspired analytical perspective extended...

The economic policies implemented in Mexico to confront the December 1994 crisis, even though instrumental in coping with the external deficit caused a strong recession coupled with falling real wages and a worsening in income distribution. These effects of the adjustment strategy stem from its...

We present strong empirical evidence favoring the role of effective demand in the US economy, in the spirit of Keynes and Kalecki. Our inference comes from a statistically well-specified VAR model constructed on a quarterly basis from 1980 to 2008. US output is our variable of interest, and it...