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Mexico: The Remaking of an Economy

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Mexico: The Remaking of an Economy

Hailed by Choice as ''a concise, exceptionally clear exposition of the transformation of Mexican economic policy since 1982,'' and selected as one of the magazine's outstanding books, the first edition of Mexico: The Remaking of an Economy was published at the height of ''Mexico-optimism.'' In 1992, most analysts and observers viewed Mexico as a model reformer among developing nations. Two years later, however, Mexico was on the verge of a financial collapse; indeed, even before the crisis of 1995, Mexico's performance was lackluster. Nora Lustig updates the original book and analyzes the possible explanations for Mexico's relative slow growth in the early nineties and the causes of the peso crisis at the end of 1994. In addition to describing the financial rescue package, she examines why the recession in 1995 was so sharp despite sizeable international assistance, the factors behind Mexico's relatively swift recovery, the evolution of poverty and inequality in Mexico, and the relationship between economic openness and inequality. Finally, Lustig highlights Mexico's economic prospects in coming years. Besides contributing to our understanding of a traumatic experience in Mexico's recent history, Lustig's analysis yields helpful insights for other reforming economies around the globe.
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