Speech and Rhetorical Studies Commons^™

Managing Economic Crises; Bill Clinton And The Mexican Peso Crisis, Liza-Anne Cabral

Undergraduate Review

The year 1994 was one of the most tumultuous in the modern history of Mexico. During that year, two major political figures were assassinated, an uprising against the federal government began in the state of Chiapas, and the government attempted to finance its deficit payments with various debt instruments. The political instability caused by the assassinations and the Zapatista uprising, along with continued economic uncertainty within Mexico, caused foreign investment capital to flee Mexico. Because of this capital flight, Mexican President Ernesto Zedillo, decided in December of 1994 to devalue the Mexican currency. Instead of helping the situation, it actually …