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 …

Although Mexico's 1994 peso devaluation and subsequent capital outflows shook the nation's banking system, the …