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The Mexican Economy Investment Grade or Peso Bubble?

San Antonio Business and Economics Society. The Mexican Economy Investment Grade or Peso Bubble?. Jorge G. Gonzalez Trinity University. The events of 2001. Economic slowdown in U.S. Mexican government gridlock Great relations with U.S. Decline in the price of oil September 11th

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The Mexican Economy Investment Grade or Peso Bubble?

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  1. San Antonio Business and Economics Society The Mexican Economy Investment Grade or Peso Bubble? Jorge G. Gonzalez Trinity University

  2. The events of 2001 • Economic slowdown in U.S. • Mexican government gridlock • Great relations with U.S. • Decline in the price of oil • September 11th • Crisis in Argentina • Yes to the World Cup!

  3. Mexico’s Reaction • ¿Peso’s debacle?

  4. Exchange RatePesos per U.S. Dollar Source: Banco de México www.banxico.org.mx

  5. Exchange RatePesos per U.S. Dollar Source: Banco de México www.banxico.org.mx

  6. Mexico’s Reaction • Peso’s debacle? • Capital flight?

  7. Foreign Direct InvestmentBillions of Dollars Source: Banco de México www.banxico.org.mx

  8. Mexico’s Reaction • Peso’s debacle? • Capital flight? • Economic crisis?

  9. Real GDP% Change Source: Banco de México www.banxico.org.mx

  10. Mexico’s Reaction • Peso’s debacle? • Capital flight? • Economic crisis? • Fiscal crisis?

  11. Government BalanceBalance / GDP Source: SHCP www.shcp.gob.mx

  12. Mexico’s Reaction • Peso’s debacle? • Capital flight? • Economic crisis? • Fiscal crisis? • Inflationary spiral?

  13. Inflation Source: Banco de México www.banxico.org.mx

  14. Bumps in the road? • Super Peso

  15. Inflation Differential vs. Exchange Rate 295 Inflation Exchange Rate 188 Source: Banco de México www.banxico.org.mx

  16. International TradeBillions of Dollars Source: Banco de México www.banxico.org.mx

  17. ¿Piedras en el camino? • Super Peso • U.S. economy • Political gridlock • Income Inequality and Poverty

  18. San Antonio Business and Economics Society The Mexican Economy Investment Grade or Peso Bubble? Jorge G. Gonzalez Trinity University

  19. San Antonio Business and Economics Society The Mexican Economy Investment Grade or Peso Bubble? www.trinity.edu/jgonzal1 Jorge G. Gonzalez Trinity University

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