Articlehybrid1996

The balance of payments and borrowing constraints: An alternative view of the Mexican crisis

Andrew G. Atkeson · José-V́ıctor Ŕıos-Rull

38 citations0/0 files storedJournal of International Economics

No readable copy stored yet — this record is metadata only.

Global Financial Crisis and Policies Monetary Policy and Economic Impact Economic Theory and Policy

Abstract

In this paper we develop a model in which a country faces a balance of payments crisis if constraints on its international borrowing bind. We use the model to describe the dynamics of the trade balance, capital account, and balance of payments of a country that borrows to finance consumption following sweeping macroeconomic and structural reforms and then hits constraints on its international borrowing. We compare the predictions of this theoretical example with events in Mexico from 1987 through 1995.

Citations in this library

Stored only when both papers are in the corpus — 38 citations exist upstream.

References

1995The Mirage of Fixed Exchange Rates 1994The World Economic Outlook 1995NBER macroeconomics annual 1994 1994Mexico: Stabilization, Reform, and No Growth 1995International Capital Markets: Developments, Prospects, and Policy Issues 1995Real Effects of Exchange Rate-Based Stabilization: An Analysis of Competing Theories 1996The Mexican Peso Crisis: Sudden Death or Death Foretold?1984Speculative Attack and the External Constraint in a Maximizing Model of the Balance of Payments

Imported from OpenAlex (CC0) — nothing here is generated.