Mexican Financial Development

[ Latin American Studies ]

Mexican Financial Development

By Dwight S. Brothers and Leopoldo Solís M.

The early twentieth-century development of the Mexican financial system as it has related to the remarkable growth of the Mexican economy is examined in this book.



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6 x 9 | 252 pp.

ISBN: 978-0-292-74413-4

The development of the Mexican financial system as it has related to the remarkable growth of the Mexican economy is examined in this book.

Believing that a better understanding of the past will permit a more nearly accurate appraisal of contemporary problems and facilitate the choice of intelligent policies in the future, the authors present a detailed chronicle and analysis of components of the Mexican financial system, with primary emphasis on the period from 1940 to the mid-1960s.

Separate chapters are devoted to the money and capital market, the formulation and execution of monetary and financial policies, and the nature of Mexican financial experience in both the public and private sectors of the economy. The authors offer a theoretical explanation of the record of Mexican experience, based upon their analysis of relationships between monetary policy, domestic stability, and external equilibrium, as well as upon their analysis of factors governing the growth of domestic indebtedness, the development of financial intermediation, and the operation of the loanable funds market. The final chapter of the book, a review of Mexican experience from 1960 to 1965, speculates with respect to the future course of Mexican financial development and offers specific proposal for future monetary and financial policies.

This record of Mexican financial development contains much that should be of interest to others engaged in related theoretical and empirical studies, including many lessons for those countries confronted with circumstances and problems not too unlike those encountered in Mexico.

List of Tables
List of Charts and Diagrams

Part I. The Early Stages
Chapter I. Development of Financial System prior to 1940
Prerevolutionary System
Destruction and Reconstruction
Circumstances at the End of the 1930s

Part II. The 1940–1960 Period—History
Chapter II. Money and Capital Market
Institutional Development
Financial Instruments
Securities Market
Chapter III. Monetary and Financial Policy
Objectives and Procedures
Instruments of Control
Factors Governing Policy Measures
Chapter IV. Monetary and Financial Experience
Money, Prices, and the Balance of Payments
Public and Private Finance
Financial Sector

Part III. The 1940–1960 Period—Analysis
Chapter V. Internal Stability and External Equilibrium
Behavior of Money and Quasi-Money
Control of the Money Supply
Control of Quasi-Money
Monetarist-Structuralist Controversy
Chapter VI. Financial Processes and Economic Growth
Growth of Domestic Indebtedness
Development of Financial Intermediation
Savings, Capital Formation, and Output Growth
Operation of Loanable-Funds Market

Part IV. Developments since 1960
Chapter VII. Recent Experience and Future Development
Review of Experience since 1960
Significant Trends and Fundamental Problems
Toward a More Efficient Financial System

Guide to Further Reading

Dwight S. Brothers was Professor of Economics at Harvard University. Leopoldo Solís M. was Director of the Instituto de Investigación Social y Económica Lucas Alamán.