The IMF And Mexico In 1990's: Is It Really Helpful For The Revival Of Mexico's Economy Or Just A Scapegoat By Mexico Politicians

The IMF and Mexico in 1990's: is it really helpful for the revival of Mexico's economy or just a scapegoat by mexico politicians

Introduction

In contrast to the previous major cycle of debt in Latin America (1974-82), when a significant portion of the funds came from the recycling of petrodollars in the years 1990-94 there was a new process of borrowing from the transfer new types of resources from financial substantial part of big pension funds and investments in more developed countries, particularly the United States. These capital emigrate to Mexico was not a fluke and that the rates of interest in the United States were extremely low since 1990. In fact, this migration of money was part of a global phenomenon and that all countries "in development "were competing to get these hot money through opening their bags or" markets emerging capital”.

The issue deserves a more detailed but we merely note here that the extraordinary growth of these capital markets (in the third world) during the years 1990-93 - flows remain above 500 billion dollars globally these markets, until they began to raise interest rates in the United States. It was then that these resources began to run low, suggesting the complexity of the links that currently exist between money markets and capital markets, which implies increased volatility in most financial transactions.

Background

The International Monetary Fund (IMF) is an international financial organization formed by the treasury and financial authorities of the countries involved. In his organization were key to the participation of England presented a plan developed by John Maynard Keynes and the United States to submit another plan prepared by Dr. Harry D. White in order to restructure economic exchanges at the end of the Second War. The search and definition of the agreements that allow the reconstruction of the economies after the war, was held in New Hampshire, from 1 and July 22, 1944, in what is historically known as the Bretton Woods. For accuracy, the agreements that were made are the basis of Agreement of the International Monetary Fund, which entered into force as of December 27, 1945.

Because the results that close the second war, the United States emerged as the first power of the capitalist world, the agreements that were made in Bretton Woods owes more to the conception and the interests of the United States the British Empire, even though his proposal was developed by the most famous economists of the twentieth century, John Maynard Keynes.

Discussion

The IMF and Mexico in 1990's: is it really helpful for the revival of Mexico's economy or just a scapegoat by mexico politicians

We reiterate that no other Latin American country was so “successful "as Mexico in 1990-1993 in placing loans or bonds and shares in international markets. Also, we must consider another factor that increased the country's external liabilities as a result of significant inflows of foreign capital that arrived in ...