Núñez, José A.; Urzúa, Carlos M. - In: Estudios Económicos 11 (1996) 2, pp. 167-180
This paper examines the sustainability of the Mexican current account deficit prior to the December 1994 crisis. It tests whether or not the Mexican economy was satisfying its intertemporal budget constraint, and finds that signals of possible trouble without a change in policies were present...