1. Mexico and the Super Peso A Tale of Two Surprises Jorge G. Gonzalez Trinity University Mexico Group

2. The events of 2001 and 2002 Economic weakness in U.S. Mexican government gridlock Mexico – U.S. relationship Crisis in Argentina

3. Mexico’s Reaction ¿Peso’s debacle?

4. Exchange Rate Pesos per U.S. Dollar Source: Banco de México www.banxico.org.mx

5. Exchange Rate Pesos per U.S. Dollar Source: Banco de México www.banxico.org.mx

6. Mexico’s Reaction Peso’s debacle? Capital flight?

7. Foreign Direct Investment Billions of Dollars Source: Banco de México www.banxico.org.mx

8. Mexico’s Reaction Peso’s debacle? Capital flight? Economic crisis?

9. Real GDP % Change Source: Banco de México www.banxico.org.mx

10. Mexico’s Reaction Peso’s debacle? Capital flight? Economic crisis? Fiscal crisis?

11. Government Balance Balance / GDP Source: SHCP www.shcp.gob.mx

12. Mexico’s Reaction Peso’s debacle? Capital flight? Economic crisis? Fiscal crisis? Inflationary spiral?

13. Inflation Source: Banco de México www.banxico.org.mx

14. Risks and Challenges Super Peso

15. Inflation Differential vs. Exchange Rate Inflation Exchange Rate 298 203 Source: Banco de México www.banxico.org.mx

16. Merchandise Trade Billions of Dollars Source: Banco de México www.banxico.org.mx

17. Why Super Peso? Foreign Investment Family Remittances

18. Family Remittances Billions of Dollars Source: Banco de México www.banxico.org.mx

19. Super Heroes

20. Risks and Challenges Super Peso U.S. economy Mexican Politics Income Inequality and Poverty

21. A Tale of Two Surprises? Economic stability is not a surprise Super Peso June 17 th, 2002

22. Source: Proceso, June 23, 2002 Pg. 41

23. Mexico and the Super Peso A Tale of Two Surprises Jorge G. Gonzalez Trinity University Mexico Group

24. Mexico and the Super Peso A Tale of Two Surprises Jorge G. Gonzalez Trinity University Mexico Group www.trinity.edu/jgonzal1