The effect of the 2007 crisis on mexico´s public finance

Abstract

At the end of the last century and beginning of this, the effects on the global economy have been impacting the economic, political and financial situation of several nations, having a significant impact on the economies of Latin America, and among other aspects affecting trade, capital flows, foreign direct investment and remittances. This analysis identifies and analyzes the mechanisms that cause macroeconomic imbalances in economies with emphasis on Latin America, through literature review of classic and modern economic theories, and data collection of specialized institutions. The empirical results shows that the economy gets these results by some factors such as demographic structure, the aspect of taxation, energy dependence, the credit and public sector, and the impact of social system in the current account.

Keywords

• Globalization
• International trade
• Employment
• Capital flow
• Taxation.