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 - chapters one to four - develops the framework, both historical and institutional. The first chapter outlines the theoretical discussion on state autonomy and develops a simple analytical framework to study public policy decisions. The subsequent three chapters address three main themes: external dependency of domestic states on international capital, political change under President Carlos Salinas and financial policy in Mexico. 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.
Table of Contents
List of Figures, List of Tables, List of Abbreviations, Introduction, 1. State Autonomy and Policy Reform: A Theoretical Framework, 2. The Politics of International Finance: Fostering Reform, 3. Domestic Politics: Making the Reform Possible, 4. Financial Policy in Mexico: A Historical Account, 5. Development Banking Reform, 6. Commercial Banks’ Privatisation, 7. Banco de Mexico’s Autonomy, 8. The Political Economy of Mexico’s 1994 Financial Crisis, Conclusions, Notes, Bibliography, Index