Calvo, Guillermo A.; Mendoza, Enrique G. - Federal Reserve Board (Board of Governors of the … - 1996
This paper claims that the roots of Mexico's balance-of-payments crisis are found in the prevailing high degree of … capital mobility and financial globalization. Under these circumstances, shifts in foreign capital flows and anticipation of a … sustainability of currency pegs. Econometric analysis suggests that 1/2 of Mexico's reserve losses could be accounted for by these …