Abstract

HUERTA G., Arturo. Reasons for a contractionist policy and its consequences. Inv. Econ [online]. 1999, vol.59, n.230, pp.15-54. ISSN 0185-1667.

This paper looks at why the process of globalization demands of emerging economies the predominance of contractionist policies, and of monetary and exchange-rate stability, all of which favour international financial capital; recognizing that the process thereby relegates to a lower priority the instrumentation of policies in favour of national demands and generalized economic growth. Likewise, the paper studies the consequences of such contractionist policies, and of monetary and exchange-rate stability, on the dynamic of accumulation within the productive sphere, on domestic savings, on the behaviour of the capitals market, and on the banking sector. Much as Mexico and the rest of Latin America insist on fiscal discipline and on monetary and exchange-rate stability, no increase in domestic savings has been achieved, nor has there been any decrease in speculative practices nor in external vulnerability, nor has banking stability been established nor a sustained dynamism in these economies. It should be noted that, while the analysis presented here could, to a greater or lesser degree, describe any of the various emerging economies, the paper refers mainly to the case of Mexico's economy.

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