1. San Antonio Business and Economics Society Mexico Bordering on Success? Jorge G. Gonzalez Trinity University

2. Six years ago... zCatastrophic Devaluation of the Peso zSignificant Capital Outflows zSkyrocketing Inflation zCollapse of the Domestic Economy zUnprecedented Political Crisis

3. Ad Augusta per Angusta zMonetary and Fiscal Discipline zBanking Crisis: Foreign Investment zAvoid Scandals zDemocratic Change

4. Results zSolid Growth Record

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

6. Results zSolid Growth Record zDecline in Inflation Rate

7. Inflation Rate Source: Banco de México www.banxico.org.mx

8. Results zSolid Growth Record zDecline in Inflation Rate zDecline in Interest Rates

9. Interest Rates 28-day CETES Source: Banco de México www.banxico.org.mx

10. Results zRapid Economic Growth zDecline in Inflation Rate zDecline in Interest Rates zIncrease in Employment

11. Employment (Thousands of IMSS Members) Source: INEGI www.inegi.gob.mx

12. Results zRapid Economic Growth zDecline in Inflation Rate zDecline in Interest Rates zIncrease in Employment zStrong Peso

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

14. Results zRapid Economic Growth zDecline in Inflation Rate zDecline in Interest Rates zIncrease in Employment zStrong Peso zStrong International Sector

15. International Trade Billions of Dollars Source: Banco de México www.banxico.org.mx

16. Zedillo’s Legacy zRapid Economic Growth zDecline in Inflation Rate zDecline in Interest Rates zIncrease in Employment zStrong Peso zStrong International Sector zDemocratic Change

17. Bordering on Success? zWeak U.S. economy zOvervalued Peso

18. Inflation Differential vs. Exchange Rate Source: Banco de México www.banxico.org.mx Exchange Rate Inflation 201.5 287.0

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

20. Bordering on Success? zWeak U.S. economy zOvervalued Peso zFiscal Reform

21. Bordering on Success? zWeak U.S. economy zOvervalued Peso zFiscal Reform zFox and Congress

22. Bordering on Success? zWeak U.S. economy zOvervalued Peso zFiscal Reform zFox and Congress zCrisis Abroad

23. Bordering on Success? zWeak U.S. economy zOvervalued Peso zFiscal Reform zFox and Congress zCrisis Abroad zWar on Poverty

24. San Antonio Business and Economics Society Mexico Bordering on Success? Jorge G. Gonzalez Trinity University

25. San Antonio Business and Economics Society Mexico Bordering on Success? Jorge G. Gonzalez Trinity University www.trinity.edu/jgonzal1