Stabilization and growth recovery in Mexico : lessons and dilemmas

_______ s *JPSt233 Policy Reaerch WORKING PAPERS Country OpolUons Country Department II Latin America and the Caribbean Regional Office The World Bank January 1992 WPS 833 Stabilization and Growth Recovery in Mexico Lessons and Dilemmas Daniel F. Oks The right combination of orthodox and heterodox policies can bring inflation down and induce sustained economic recovery in Mexico - and has done so. But a few loose ends remain: a sharp decline in private savings and the continuing appreciation of the peso. Policy Research Wo&king Papes disseminate the findings of work in Fmress and er.ourage the eachemge of ideas ameng Bank staff and al1 otheresa in development issues. lesepapem, distnbuted by the Research Advisoy Staff, carny the names ofuthe r, reflect onlytheirviews,and shouldbeused and citod accordingly. The findig,intaprctations.and conclusions.aretheauhos'own.Ieyshould ncet be attnbuted to the World Barlk, its Board of Directors, its managemnent, or any of its memnber countries.  Policy Resea;