A Record of the Mexican Peso Crisis Due to the Mexican Government's Devaluation of the Peso
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The Mexican peso crisis was due to the Mexican government’s devaluation of the peso. After the devaluation of the peso, the federal government commenced to go downhill. The countries GDP fell and international investors became afraid to get or started to market their investments. The united states was given many bailout plans from the U.S, IMF, the lender of International Settlements, Canada, and several Latin countries. The crisis caused a large number of mortgages to get into default as Mexican residents struggled to keep rate with rising interest rates, which led to widespread repossession of houses. The united states also faced developing poverty that affected urban areas more intensely than rural areas, due to the urban population's sensitivity to labor market and macroeconomic circumstances. With help from different countries and banks, Mexico could stabilize its overall economy years later, and restore self confidence to the foreign shareholders.