The Bailout of Mexico: A Costly Mistake?
Publication Date: January 1995
Publisher: Heritage Foundation (Washington, D.C.)
Author(s): John P. Sweeney
Research Area: Economics
Keywords: Latin American
Type: Report
Coverage: Mexico
Abstract:
Congress should hold off approving the $40 billion in loan guarantees for Mexico. The Clinton Administration’s proposed bailout plan for Mexico will only postpone a final reckoning for Mexico’s state-controlled economy at great potential cost to U.S. taxpayers. It will not fix the underlying structural weaknesses of the Mexican economy that caused the collapse of the Mexican peso in the first place.
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