Mexico: Fiscal Policy and Global Pandemic

Abstract

This paper analyzes the role of fiscal policy in Mexico in the context of the global pandemic. Some economic indicators that show the first effects on global financial markets are taken into account. As a result, governments reacted with expansionary fiscal policies in a heterogeneous manner. A comparison is made with the case of Mexico and the particularities of the latter are contrasted, taking into account the Mexican economic structure with its own demand components and showing the decrease, on the one hand, of consumption and, on the other, of the investment. In this way, the repercussions on unemployment increase with the slowdown in the economy.