States, Banks, and Markets: Mexico’s Path to Financial Liberalization in Comparative Perspective
In States, Banks, and Markets, Nancy Neiman Auerbach approaches financial policymaking as a strategic interaction between two sets of domestic actors: private financiers and state officials. Through a comparative lens, Auerbach explains why the transition to financial liberalization was accompanied by economic crisis and declining growth rates in countries such as Mexico, while the same policy was associated with higher growth rates and a relatively more equitable distribution of income in other countries such as South Korea and Hong Kong. Auerbach demonstrates how it is not financial liberalization itself but the timing and duration of the liberalization process that differentiates the performance of newly industrializing countries. She also takes the analysis a step further by explaining the economic and political preconditions that put a country in the position to choose a reasonable reform path.
Mexico, Korea, economic policy, liberalization, industrializing
Economic Policy | Economics | Growth and Development | Income Distribution | International Economics
Neiman Auerbach, Nancy. States, Banks, and Markets: Mexico’s Path to Financial Liberalization in Comparative Perspective, Westview Press, 2001.