The Economic crisis of the Mexico of 1994 - 1995 , which struck the Mexican economy hard, begin with an abrupt devaluation from the Mexican Peso, extended to the real economy from the country, then had reflected in the whole world, in particular in South America.

Release

The crisis was started in December 1994 by the sudden devaluation of the Mexican peso the first days of the presidential mandate of Ernesto Zedillo, from where its name of crisis of the Mexican peso .

The crisis is also known in Spanish like el error of diciembre (" the fault of décembre"), an expression which one owes to the president Carlos Salinas de Gortari, or like the crisis Tequila or the effect Tequila (Spanish: Efecto Tequila , Portuguese: Efeito Tequila ).

Economic origin

The fixed anchoring of the Mexican Peso with the dollar was, in the long term, incompatible with the elevated level of the Inflation in Mexico. Nevertheless, this anchoring gave the general illusion of an exchange shortfall guarantee. Added to the removal of structural obstacles to the movements of capital, it causes of 1990 to 1993 a considerable surge of foreign liquidities in the Mexican economy: more than 90 billion dollars, which comes dollariser the Mexican economy and, especially, to nourish a boom of the bank credits to the private sector, which grow of 25% per annum for the period.

But inflation erodes small-with-small Mexican competitiveness and the external accounts of the country worsen, the deficit of the Balance of the payments reaching 8% of GDP. From the December 20th, 1994, the outflows of capital accelerate and the peso unscrews. Bill Clinton, president of the the United States, close economic neighbor of Mexico, intervenes to stop this crisis, and the the United States with international organizations, lend 50 billion US Dollar to Mexico one week after the beginning of the crisis, including 18 billion via the the IMF.

Consequences

In 1995, the fall of the Mexican GDP will be of 7%.

In the Southern Cone and with the Brazil, the impact which had the Mexican crisis was also very important.

See too

• Economy of Mexico
• List of the monetary and financial crises