The Political Economy of Mexico's Financial Reform

This title was first published in 2001. An analysis of the political economy of Mexico's financial reform. It is organized in three parts. The first part develops the framework, both historical and institutional. The second part presents the analysis of three main institutional changes to the financial system - development banking reform, commercial banking privatisation and autonomy of the central bank. Each specific case study shows how the reforms conformed to the ideas of the dominant consensus on economic policy and how they delivered an inefficient incentive structure. The third part - chapter eight - brings together all the elements to explain Mexico's 1994 financial crisis.