Mexico, economic and financial crisis

Abstract

This collaboration sustains the idea that financial and economic instability is intrinsic to the neoliberal economic model.  This model has radically transformed the economy and Mexican society, the endogenous capacity of growth, the possibility to maintain public policy, institutions and social organization, but also the organization of relationships in domestic power blocs.  The first part of the article examines the conditions under which previous financial crises developed in Mexico, insisting that the 1982 crisis was due to processes of opening and economic and financial deregulation, much like that of 1994.  The second part analyzes the conditions in which the current global financial and economic crisis has developed en Mexico.  The third part delves into the conditions under which economic and financial spheres organize themselves in a subsidiary economy, generating ample rent-seeking spaces for local and international financial distribution, all under a failed economic model.  Finally, the limitations of current counter-cyclical policies will be examined.