Growth and Debt: Mexico and the United States in the Medium Term

Authors

Sven W. Arndt, Claremont McKenna CollegeFollow
Donald R. Lessard, Massachusetts Institute of Technology
Clark W. Reynolds, Stanford University

Document Type

Report

Department

Economics (CMC)

Publication Date

1986

Abstract

Mexico and the United States are at an historic crossroad. Earthquake, oil prices, and domestic inflation have dramatically worsened Mexico's economic situation in the past year, more than offsetting the beneficial effects of lower international interest rates. Trade, financial, and employment relations between the two countries are threatened at the very time when their economic and social interdependence is growing. While temporary relief has been gained from recent agreements with the IMF, World Bank, and other international institutions, condition on commercial bank acceptance, even if all the terms are met much remains to be done.

Comments

Working paper sponsored by the Project on United States-Mexico Relations at Stanford and the American Enterprise Institute.

Rights Information

© 1986 American Enterprise Institute

Recommended Citation

Arndt, Sven W., Lessard, D.R., and C.W. Reynolds. "Growth and Debt: Mexico and the United States in the Medium Term." AEI Occasional Papers (September 1986).