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Part of the reason for the Mexican peso crisis of 1994 was Mexico's decision to

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Part of the reason for the Mexican peso crisis of 1994 was Mexico's decision to

Part of the reason for the Mexican peso crisis of 1994 was Mexico's decision to
A) allow the peso to depreciate too rapidly.
B) allow the peso to appreciate too rapidly.
C) maintain relatively low nominal interest rates in the face of relatively high inflation.
D) maintain a roughly fixed nominal exchange rate in the face of relatively high inflation.
E) run a very small budget deficit in the face of relatively high inflation.

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Macroeconomics

Edition: 6^th

Authors: Blanchard, Johnson

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