The Mexican peso crisis (also known as the Tequila crisis or December mistake crisis) was a currency crisis sparked by the Mexican government's sudden devaluation of the peso against the U.S. dollar in December 1994, which became one of the first international financial crises ignited by capital flight. During the 1994 presidential election, the incumbent administration embarked on expansionary fiscal and monetary policy.
The Mexican treasury began issuing short-termdebt instruments denominated in domestic currency with a guaranteed repayment in U.S. dollars, attracting foreign investors. Mexico enjoyed investor confidence and new access to international capital following its signing of the North American Free Trade Agreement (NAFTA). However, a violent uprising in the state of Chiapas, as well as the assassination of the presidential candidate Luis Donaldo Colosio, resulted in political instability, causing investors to place an increased risk premium on Mexican assets.
Mexican wine and wine making began with the arrival of the Spanish in the 16th century, when they brought vines from Europe to modern day Mexico, the oldest wine-growing region in the Americas. Although there were indigenous grapes before the Spanish conquest, the Spaniards found that Spanish grapevines also did very well in the colony of New Spain (Mexico) and by the 17th century wine exports from Spain to the New World fell. In 1699, Charles II of Spain prohibited wine making in Mexico, with the exception of wine for Church purposes. From then until Mexico’s Independence, wine was produced in Mexico only on a small scale. After Independence, wine making for personal purposes was no longer prohibited and production rose, especially in the late 19th and early 20th centuries. Many other European immigrant groups helped with the comeback of wine in Mexico. However, the Mexican Revolution set back wine production, especially in the north of the country. Wine production in Mexico has been rising in both quantity and quality since the 1980s, although competition from foreign wines and 40% tax on the product makes competing difficult within Mexico. Mexico is not traditionally a wine-drinking country, but rather prefers beer, tequila and mezcal. Interest in Mexican wine, especially in the major cities and tourists areas (along with the introduction into the US on a small scale), has grown along with Mexican wines’ reputation throughout the world. Many Mexican companies have received numerous awards. Various wine producers from Mexico have won international awards for their products.
Mexico was a barque that was wrecked off Southport on 9 December 1886. She was repaired only to be lost in Scottish waters in 1890.
Shipwreck
On 9 December 1886, the Mexico was on its way from Liverpool to Guayaquil, Ecuador when it was caught in a storm. Lifeboats were launched from Lytham, St. Annes and Southport to rescue the crew. The Lytham lifeboat Charles Biggs, which was on her maiden rescue, rescued the twelve crew but both the St. Annes lifeboat Laura Janet and the Southport lifeboat Eliza Fernley were capsized, and 27 of the 29 crew were drowned. To date, this is the worst loss of RNLI crew in a single incident.Mexico came ashore off Birkdale, opposite the Birkdale Palace Hotel.
Aftermath
Sixteen women were left widows, and fifty children lost their fathers. Queen Victoria and the Kaiser sent their condolences to the families of the lifeboatmen. An appeal was launched to raise money to provide a memorial to those killed, and the organisation by Sir Charles Macara of the first street collections in Manchester in 1891 led to the first flag days. The disaster has a permanent memorial in Lytham St. Annes lifeboat house. An appeal has been launched by the Lytham St. Annes Civic Society for the restoration of four of the memorials.
The main action of Mexico takes place in Mexico over a three-day period in the fictional city of Toledo in 1961. The occasion is the annual bullfighting festival, at which two matadors — one an acclaimed hero of the sport, the other a scrapping contender — are prepared to fight to the death for fame and glory.
Through the memories of the book's narrator, Norman Clay, an American journalist of Spanish and Indian descent, Michener provides plenty of historical background, including a depiction of the gruesome human sacrifices that took place hundreds of years before on the city's periphery. The story focuses on bullfighting, but also provides great insight into Mexican culture. The reader follows the bulls from their breeding to their "sorting" to the pageantry and spectacle of the bullring, where picadors and banderilleros prepare the bull for the entrance of the matador with his red cape. The author creates one of his most memorable characters in the bullfighting "critic" Leon Ledesma, a flamboyant sportswriter who elevates bullfighting into an art form through his grandiloquent essays.
The financial crisis in Mexico in 1994 is an interesting case study in the volatile nature of international finance.
Graphs and data sourced from the World Bank
data.worldbank.org
published: 20 Apr 2020
The Mexican Miracle? The Lead-Up to the Tequila Crisis
Mexico suffered a currency crisis in December of 1994 that led to a sharp devaluation of the peso. We will discuss some of the major reasons behind the crisis.
Mexico's Economy: Current Prospects and History course: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history
Ask a question about the video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/mexican-miracle-lead-tequila-crisis#QandA
Next video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/tequila-crisis
published: 15 Jun 2015
Around the World in 88 Crashes - Ep54: The Mexican Peso Crisis 1994
We are still marching through the 90s and today we have travelled from UK to Mexico!
This is what happens when you investments flee your markets!
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ALL OUR VIDEOS ARE RELEASED 9PM (UK)- Ring That Bell!!
MONDAY - MoneyMyth (As and when released)
WEDNESDAY - Economic Law & Order (As and when released)
SATURDAY - Around the World in 88 Crashes
SUNDAY - The Weekly News
published: 07 Jan 2023
The Mexican Peso Crisis of the Mid-1990s
In late 1994, the Mexican government - which had been supporting the peso/US dollar exchange rate began to run out of reserves. Hot money which had poured into Mexico after NAFTA went into effect reversed and the peso rapidly depreciated. The Mexican peso crisis was one of the more prominent currency crises of the 1990s. President Clinton tried to arrange an official loan from the US but Congress balked. He then took unilateral action, both providing funds and organizing similar actions from other countries and institutions. The peso crisis was notable because of the role of the US as the major player; institutions normally involved in such matters - such as the International Monetary Fund (IMF) - were largely in the background. The episode indicates the risks for countries trying to...
published: 01 Jun 2008
Tequila Crisis
What kind of options did the Mexican government have in December of 1994, what were some crucial errors that officials made, and what was the aftermath of the crisis like for the economy?
Mexico's Economy: Current Prospects and History course: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history
Ask a question about the video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/tequila-crisis#QandA
Next video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/introduction-nafta
published: 17 Aug 2015
Mexico's Tequila Crisis 1994
This lesson looks at the vulnerabilities in Mexico's economy that ultimately led to the Tequila crisis in 1994
published: 26 Apr 2014
International Financial Crisis: Mexico 1994–1995; Mankiw
BooK: Macro Economics 7th Ed: N. Gregory Mankiw;
P-358-P-360.Ch.12
International Financial Crisis: Mexico 1994–1995;
The financial crisis in Mexico in 1994 is an interesting case study in the volatile nature of international finance.
Graphs and data sourced from the World Ban...
The financial crisis in Mexico in 1994 is an interesting case study in the volatile nature of international finance.
Graphs and data sourced from the World Bank
data.worldbank.org
The financial crisis in Mexico in 1994 is an interesting case study in the volatile nature of international finance.
Graphs and data sourced from the World Bank
data.worldbank.org
Mexico suffered a currency crisis in December of 1994 that led to a sharp devaluation of the peso. We will discuss some of the major reasons behind the crisis.
...
Mexico suffered a currency crisis in December of 1994 that led to a sharp devaluation of the peso. We will discuss some of the major reasons behind the crisis.
Mexico's Economy: Current Prospects and History course: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history
Ask a question about the video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/mexican-miracle-lead-tequila-crisis#QandA
Next video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/tequila-crisis
Mexico suffered a currency crisis in December of 1994 that led to a sharp devaluation of the peso. We will discuss some of the major reasons behind the crisis.
Mexico's Economy: Current Prospects and History course: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history
Ask a question about the video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/mexican-miracle-lead-tequila-crisis#QandA
Next video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/tequila-crisis
We are still marching through the 90s and today we have travelled from UK to Mexico!
This is what happens when you investments flee your markets!
Leave a comm...
We are still marching through the 90s and today we have travelled from UK to Mexico!
This is what happens when you investments flee your markets!
Leave a comment - we respond to as many as we can!
Email [email protected]
Tweet @EconomicResear6
ShareVision: https://sharevision.com/channel/economicresearch/videos
ALL OUR VIDEOS ARE RELEASED 9PM (UK)- Ring That Bell!!
MONDAY - MoneyMyth (As and when released)
WEDNESDAY - Economic Law & Order (As and when released)
SATURDAY - Around the World in 88 Crashes
SUNDAY - The Weekly News
We are still marching through the 90s and today we have travelled from UK to Mexico!
This is what happens when you investments flee your markets!
Leave a comment - we respond to as many as we can!
Email [email protected]
Tweet @EconomicResear6
ShareVision: https://sharevision.com/channel/economicresearch/videos
ALL OUR VIDEOS ARE RELEASED 9PM (UK)- Ring That Bell!!
MONDAY - MoneyMyth (As and when released)
WEDNESDAY - Economic Law & Order (As and when released)
SATURDAY - Around the World in 88 Crashes
SUNDAY - The Weekly News
In late 1994, the Mexican government - which had been supporting the peso/US dollar exchange rate began to run out of reserves. Hot money which had poured into...
In late 1994, the Mexican government - which had been supporting the peso/US dollar exchange rate began to run out of reserves. Hot money which had poured into Mexico after NAFTA went into effect reversed and the peso rapidly depreciated. The Mexican peso crisis was one of the more prominent currency crises of the 1990s. President Clinton tried to arrange an official loan from the US but Congress balked. He then took unilateral action, both providing funds and organizing similar actions from other countries and institutions. The peso crisis was notable because of the role of the US as the major player; institutions normally involved in such matters - such as the International Monetary Fund (IMF) - were largely in the background. The episode indicates the risks for countries trying to maintain fixed exchange rates without substantial currency reserves.
In late 1994, the Mexican government - which had been supporting the peso/US dollar exchange rate began to run out of reserves. Hot money which had poured into Mexico after NAFTA went into effect reversed and the peso rapidly depreciated. The Mexican peso crisis was one of the more prominent currency crises of the 1990s. President Clinton tried to arrange an official loan from the US but Congress balked. He then took unilateral action, both providing funds and organizing similar actions from other countries and institutions. The peso crisis was notable because of the role of the US as the major player; institutions normally involved in such matters - such as the International Monetary Fund (IMF) - were largely in the background. The episode indicates the risks for countries trying to maintain fixed exchange rates without substantial currency reserves.
What kind of options did the Mexican government have in December of 1994, what were some crucial errors that officials made, and what was the aftermath of the c...
What kind of options did the Mexican government have in December of 1994, what were some crucial errors that officials made, and what was the aftermath of the crisis like for the economy?
Mexico's Economy: Current Prospects and History course: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history
Ask a question about the video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/tequila-crisis#QandA
Next video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/introduction-nafta
What kind of options did the Mexican government have in December of 1994, what were some crucial errors that officials made, and what was the aftermath of the crisis like for the economy?
Mexico's Economy: Current Prospects and History course: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history
Ask a question about the video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/tequila-crisis#QandA
Next video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/introduction-nafta
The financial crisis in Mexico in 1994 is an interesting case study in the volatile nature of international finance.
Graphs and data sourced from the World Bank
data.worldbank.org
Mexico suffered a currency crisis in December of 1994 that led to a sharp devaluation of the peso. We will discuss some of the major reasons behind the crisis.
Mexico's Economy: Current Prospects and History course: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history
Ask a question about the video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/mexican-miracle-lead-tequila-crisis#QandA
Next video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/tequila-crisis
We are still marching through the 90s and today we have travelled from UK to Mexico!
This is what happens when you investments flee your markets!
Leave a comment - we respond to as many as we can!
Email [email protected]
Tweet @EconomicResear6
ShareVision: https://sharevision.com/channel/economicresearch/videos
ALL OUR VIDEOS ARE RELEASED 9PM (UK)- Ring That Bell!!
MONDAY - MoneyMyth (As and when released)
WEDNESDAY - Economic Law & Order (As and when released)
SATURDAY - Around the World in 88 Crashes
SUNDAY - The Weekly News
In late 1994, the Mexican government - which had been supporting the peso/US dollar exchange rate began to run out of reserves. Hot money which had poured into Mexico after NAFTA went into effect reversed and the peso rapidly depreciated. The Mexican peso crisis was one of the more prominent currency crises of the 1990s. President Clinton tried to arrange an official loan from the US but Congress balked. He then took unilateral action, both providing funds and organizing similar actions from other countries and institutions. The peso crisis was notable because of the role of the US as the major player; institutions normally involved in such matters - such as the International Monetary Fund (IMF) - were largely in the background. The episode indicates the risks for countries trying to maintain fixed exchange rates without substantial currency reserves.
What kind of options did the Mexican government have in December of 1994, what were some crucial errors that officials made, and what was the aftermath of the crisis like for the economy?
Mexico's Economy: Current Prospects and History course: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history
Ask a question about the video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/tequila-crisis#QandA
Next video: http://mruniversity.com/courses/mexicos-economy-current-prospects-and-history/introduction-nafta
The Mexican peso crisis (also known as the Tequila crisis or December mistake crisis) was a currency crisis sparked by the Mexican government's sudden devaluation of the peso against the U.S. dollar in December 1994, which became one of the first international financial crises ignited by capital flight. During the 1994 presidential election, the incumbent administration embarked on expansionary fiscal and monetary policy.
The Mexican treasury began issuing short-termdebt instruments denominated in domestic currency with a guaranteed repayment in U.S. dollars, attracting foreign investors. Mexico enjoyed investor confidence and new access to international capital following its signing of the North American Free Trade Agreement (NAFTA). However, a violent uprising in the state of Chiapas, as well as the assassination of the presidential candidate Luis Donaldo Colosio, resulted in political instability, causing investors to place an increased risk premium on Mexican assets.