Document Type



Economics (CMC)

Publication Date



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.


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

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© 1986 American Enterprise Institute

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