Foreword xiii Preface xv Acknowledgments xvii I. Historical Trends and Sources of Growth 1 Introduction 3 1. An Overview of the Mexican Economy 5 2. Mechanisms of Mexican Economic Growth 28 3. External Sources of Instability 38 II. Economic Policymaking, 1971-82 53 4. Policymaking during the Echeverría Administration, 1971-76 57 5. Policymaking in the Early López Portillo Years: Devaluation and Stabilization 69 6.

Industrial Policy under López Portillo 84 7. Fiscal Policy under López Portillo: Prelude to the 1982 Crisis 95 8. Policymaking in López Portillo's Final Year: The 1982 Devaluations and Aftermath 111 III. Empirical Examinations of Policy Impact 123 Introduction 125 9. Scope for Anti-Inflationary Policy 127 10. Dynamics of the Fiscal System 150 11. Macroeconomic Controversies: The Monetarist-Cambridge Interpretations of the Policy Environment 164 12. Impact of Fiscal Policy: A Critique of the Fitzgerald Thesis 179 IV.

Scope for Optimal Policymaking 203 Introduction 205 13. Optimal Stabilization Programs, 1975-81 207 14. Scope for Optimal Policy in an Oil-Based Economy, 1982-87 235 15. Optimal IMF-Type Stabilization Programs during the de la Madrid Presidency, 1983-87 260 16. The Policymaking Dilemma 276 Notes 283 Bibliography 297 Index 307.