TY - JOUR
T1 - The balance of payments and borrowing constraints
T2 - An alternative view of the Mexican crisis
AU - Atkeson, Andrew
AU - Ríos-Rull, José Víctor
PY - 1996/11
Y1 - 1996/11
N2 - In this paper we develop a model in which a country faces a balance of payments crisis if constraints on its international borrowing bind. We use the model to describe the dynamics of the trade balance, capital account, and balance of payments of a country that borrows to finance consumption following sweeping macroeconomic and structural reforms and then hits constraints on its international borrowing. We compare the predictions of this theoretical example with events in Mexico from 1987 through 1995.
AB - In this paper we develop a model in which a country faces a balance of payments crisis if constraints on its international borrowing bind. We use the model to describe the dynamics of the trade balance, capital account, and balance of payments of a country that borrows to finance consumption following sweeping macroeconomic and structural reforms and then hits constraints on its international borrowing. We compare the predictions of this theoretical example with events in Mexico from 1987 through 1995.
KW - Balance of payments
KW - Exchange rate crises
KW - International borrowing
KW - Speculative attacks
UR - http://www.scopus.com/inward/record.url?scp=0005084126&partnerID=8YFLogxK
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U2 - 10.1016/S0022-1996(96)01440-7
DO - 10.1016/S0022-1996(96)01440-7
M3 - Article
AN - SCOPUS:0005084126
SN - 0022-1996
VL - 41
SP - 331
EP - 349
JO - Journal of International Economics
JF - Journal of International Economics
IS - 3-4
ER -
