Analyze how the three positive exogenous shocks of 1988 affected Mexico’s economy during 1988 – 1993.
Be sure to discuss
1.Mexico’s GDP and the four major expenditure components.
2.Mexico’s current and financial accounts, national saving & investment (S- I), and competitive essay
Don’t forget to consider subcomponents of the current & financial accounts.
3.Government finances (& national savings) including deficits & external debt4.Exchange rate management, money supplies, interest rates, and inflation.
Don’t forget to consider the possibility of sterilized interventionb.
Note: velocity is not an important part of this story
5.The private banks .NEED TO USE the concepts and skills in international economics such as monetary policy(money supply, money multiplier, etc), inflation, the economy, competitiveness & the balance of payments, international capital movements to explain what was going on.
Be specific and detailed for each point.
Add the charts for the thing you explained.
Requirements: About 3-4 pages