1994 mexican peso crisis research paper

Much like Mexico, Thailand relied heavily on foreign debt , causing it to teeter on the brink of illiquidity. Primarily, real estate dominated investment was inefficiently managed. Huge current account deficits were maintained by the private sector , which increasingly relied on foreign investment to stay afloat. This exposed the country to a significant amount of foreign exchange risk . This risk came to a head when the United States increased domestic interest rates, which ultimately lowered the amount of foreign investment going into Southeast Asian economies. Suddenly, the current account deficits became a huge problem, and a financial contagion quickly developed. The Southeast Asian crisis stemmed from several key points:

1994 mexican peso crisis research paper

1994 mexican peso crisis research paper

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1994 mexican peso crisis research paper1994 mexican peso crisis research paper1994 mexican peso crisis research paper1994 mexican peso crisis research paper