Abstract

MEJIA REYES, Pablo; DIAZ CARRENO, Miguel Ángel  and  VERGARA GONZALEZ, Reyna. Recessions in Mexico at the Dawn of the Twenty-First Century. Prob. Des [online]. 2017, vol.48, n.189, pp.57-84. ISSN 0301-7036.

This paper uses an episodic approach to contrast the causes, transmission mechanisms, and policy responses involved in Mexico’s two recent major recessions in 2001-2003 and 2008-2009 and explain their different characteristics. Both recessions were derived from speculative bubbles in specific sectors in the United States and engendered analogous episodes in the Mexican economy as a result of a high degree of integration. Even so, the former was longer due to exogenous shocks (terrorist attacks and China’s accession to the World Trade Organization (WTO)), which exacerbated plummeting manufactures, but the latter more profound due to the effects of the credit collapse. This evidence attests to the limitations of domestic economic policy and the Mexican economy’s acute vulnerability to external shocks.

Keywords : Economic recession; economic cycles; adjustment policies; economic indicators; United States.

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