Privatizations and monetary policy in Mexico during 1991 and 1992

The 1991 - 1992 privatizations determined government proceeds equivalent to 6 percent of Mexico's GDP. The privatizations were carried cut at a time the country had significantly improved its public finances, curbed high Inflationary expectations and, also, turned its current account from a sur...

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Autor principal: Baldrich, Jorge
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 1994
Materias:
Ciencias Económicas
privatizations
Mexico
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/171344
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-171344
record_format dspace
spelling I19-R120-10915-1713442024-10-10T20:03:06Z http://sedici.unlp.edu.ar/handle/10915/171344 Privatizations and monetary policy in Mexico during 1991 and 1992 Baldrich, Jorge 1994 1994 2024-10-10T13:38:07Z en Ciencias Económicas privatizations Mexico The 1991 - 1992 privatizations determined government proceeds equivalent to 6 percent of Mexico's GDP. The privatizations were carried cut at a time the country had significantly improved its public finances, curbed high Inflationary expectations and, also, turned its current account from a surplus of 0553,164 million in 1987 to a deficit of USS7,800 million im 1990. This paper argues that, under a current account deficit, a privatization policy tends to increase the supply of domestic assets the private sector is seeking. However, the model presented shows that two cases must be distinguished, if the privatization proceeds are received in tradable ta (money or foreing bonds) the Government absorbs the assets that the private sector want to dispose of; if, to the contrary, the proceeds are received in domestics assets (i.e. domestica bonds) what the Government absorbs is the assets that the private sector seeks and, in this case, the convergence to external equilibrium could be postponed. In particular, the paper argues that the 1992 policy of using the proceeds from privatizations to redeem domestic public debt held by the commercial banks prompted an additional disequilibrium force on the Mexican balance of payments. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
privatizations
Mexico
spellingShingle Ciencias Económicas
privatizations
Mexico
Baldrich, Jorge
Privatizations and monetary policy in Mexico during 1991 and 1992
topic_facet Ciencias Económicas
privatizations
Mexico
description The 1991 - 1992 privatizations determined government proceeds equivalent to 6 percent of Mexico's GDP. The privatizations were carried cut at a time the country had significantly improved its public finances, curbed high Inflationary expectations and, also, turned its current account from a surplus of 0553,164 million in 1987 to a deficit of USS7,800 million im 1990. This paper argues that, under a current account deficit, a privatization policy tends to increase the supply of domestic assets the private sector is seeking. However, the model presented shows that two cases must be distinguished, if the privatization proceeds are received in tradable ta (money or foreing bonds) the Government absorbs the assets that the private sector want to dispose of; if, to the contrary, the proceeds are received in domestics assets (i.e. domestica bonds) what the Government absorbs is the assets that the private sector seeks and, in this case, the convergence to external equilibrium could be postponed. In particular, the paper argues that the 1992 policy of using the proceeds from privatizations to redeem domestic public debt held by the commercial banks prompted an additional disequilibrium force on the Mexican balance of payments.
format Objeto de conferencia
Objeto de conferencia
author Baldrich, Jorge
author_facet Baldrich, Jorge
author_sort Baldrich, Jorge
title Privatizations and monetary policy in Mexico during 1991 and 1992
title_short Privatizations and monetary policy in Mexico during 1991 and 1992
title_full Privatizations and monetary policy in Mexico during 1991 and 1992
title_fullStr Privatizations and monetary policy in Mexico during 1991 and 1992
title_full_unstemmed Privatizations and monetary policy in Mexico during 1991 and 1992
title_sort privatizations and monetary policy in mexico during 1991 and 1992
publishDate 1994
url http://sedici.unlp.edu.ar/handle/10915/171344
work_keys_str_mv AT baldrichjorge privatizationsandmonetarypolicyinmexicoduring1991and1992
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