Changing regimes, debt structure and bank fragility in Mexico

Authors

  • Rodolfo Cermeño Centro de Investigación y Docencia Económicas, A.C.
  • Fausto Hernández Trillo Centro de Investigación y Docencia Económicas, A.C.
  • Alejandro Villagómez Amezcua Centro de Investigación y Docencia Económicas, A.C.

DOI:

https://doi.org/10.24201/ee.v16i1.208

Keywords:

tequila crisis, Hamilton, public debt

Abstract

This paper uses the switching probability regimes methodology to estimate the determinants of financial crisis, measured in changes in the stochastic regimes of interest and exchange rates. We use Mexico to perform the exercise. Results suggest that public debt structure is important in explaining the so-called tequila crisis. This result contrasts with the determinants identified by the existent literature. In addition, financial fragility measured as the ratio of M2 to reserves, was also important in explaining the regimes under study.

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Published

2001-01-01

How to Cite

Cermeño, R., Hernández Trillo, F., & Villagómez Amezcua, A. (2001). Changing regimes, debt structure and bank fragility in Mexico. Estudios Económicos De El Colegio De México, 16(1), 105–132. https://doi.org/10.24201/ee.v16i1.208

Issue

31-vol. 16, no. 1, january-june, 2001

Section

Articles