Case 204 - North American Economic Integration: Monetary and Exchange Rate Aspects

by ISD - Georgetown University
$ 4.50

Maxfield, Sylvia

While the trinational negotiations on the North American Free Trade Agreement proceeded in earnest during the early 1990s, Mexico and the United States conducted a related set of discussions on the prospect of exchange rate coordination behind the scenes. Part A of this case study discusses the U.S. and Mexican positions on exchange rate coordination, while Part B describes the peso’s devaluation after NAFTA’s launch in 1994.