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This paper was written by A. James Meigs. Mexico gave exchange rate pegging a thorough test between 1988 and 1994. Pegging failed to deliver the expected benefits. Instead, it made achievement of price stability and sustained economic growth more difficult. If Mexico had adopted market-determined exchange rates instead of pegged rates, he believes there would have been no Mexican peso crisis in 1994-95. It gives you a detail idea of the monetary policies adopted in Mexico. |
