Public Debt and National Sovereignty

Abstract

This article revises the conditions of debt sustainability in the public sector in Mexico, compared toother countries. The main obstacle to reach in debt sustainability in an open-market context is aninflux of capital, which travels from one market to another in such an abrupt way that causes a major problem in the country and prompts counterproductive policies. The financial stability ofrecent years caused a loss of sovereignty in determining economic policy and produced a futile economic activity.