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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1239 |
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The expenditure switching and reduction effect of the devaluation was temporary as the government continued to spend and borrow, encouraged by the large oil discoveries in the mid 1970’s, resulting in the widening of the current account deficit and a rise in external debt. Changes in policies were only brought about post the oil price collapse in 1981 and the increases in international interest rates...
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Changes in policies were only brought about post the oil price collapse in 1981 and the increases in international interest rates. The 2nd period from 1982 to 1988 has been shown to be one of a weak economic performance, following the government default on its external debt. Following the devaluation of the peso, an IMF supported economic program was implemented in 1982 which led to a decrease in internal and external imbalances, a receding of inflation and an increase in real gdp...
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