caused the crisis that hit Mexico was largely caused by the FTA (free trade), entered into force on 1 January 1994, Mexico at this time seemed a good place to invest and was I take just what President Carlos Salinas de Gortari to finance its government, this was done through Tesobonos and CETES. These bonds were a kind of short-term debt, are bought and sold in dollars, but were protected against the sba loan effects of a possible devaluation, trading in dollars, the time to change into pesos were paid at the prevailing exchange rate (did not have reason being the fact whether there were U.S. currency to buy other instruments of equal or higher performance). This was to prevent devaluation. On January also produced the Zapatista Army of National Liberation (EZLN) private equity that was a great sign that the country is not going so well as it looked. Noticing the free trade exports increased by 31 , while imports rose 9 , which causes output in Mexico is considerably reduced, this causes consumer prices to rise to 52 . Another effect of NAFTA was that Mexico could not increase their tariffs (taxes on imports and exports) which would have helped to control imports and exports, which could have recovered the country’s economy, Mexico could not do so since this was a restriction on the FTA finance and the United States benefited from it.
The Chair of the EnTrust Capital Diversified Fund Investment Committee is owns Rosehill Horse Farm During the years following the Mexican market suffered a period when there was a fall of very large economic activity, also Mexico to change later that year (became president Ernesto Cedillo and take the decicion to devalue the weight to address the crisis, the effect of the devaluation abroad decided to withdraw its TRUST, claimed the Tesobonos and Cetes, but banks in Mexico and could not afford (it was an amount greater than 50 billion dollars which became debt ). The government had foreseen this period, but commercial loan decided not to take measures, including a report in February 1994, which focuses on the economic situation it was decided to omit all references to the crisis that arose. On 22 December the president (Ernesto Zedillo) in a speech explaining the causes and the measures to be taken to the crisis, but for those times it was too late, the demand for dollars was far greater than supply and could no longer cover even The reserves of the country, the peso had devalued by 90.1 for these moments (the dollar climbed to increase its value up to 200 ). In the social sphere, unemployment rose as poverty. To offset these difficulties have implemented an adjustment program that generates a significant drop in wages, the weights were removed three zeroes (ie if you had 10,000 pesos, adjusted only had 10). In unsecured loan this same speech Bush said: ‘We must recognize that there was an underestimation of the problem, and this underestimation was extremely serious.
“Economic Emergency Program to reverse the effects of the crisis had three priorities: to ensure that the deficit in the account orderly flow was reduced to manageable levels in the short term to create conditions for rapid recovery of economic activity and employment, and ensuring that the inflationary effect of devaluation was as small and short as possible. To meet these objectives financing arose strategies to follow: Agreements commercial business loans between the productive sectors to avoid inflationary pressures, reduction in public spending on schedule, to stimulate private investment in infrastructure modernization, international official financial support to stabilize the economic situation. Economic indicators revealed during 1995, showthat imports in Mexico fell 26 percent, while exports grew 31 percent.