1. The Mexican Economy Investment Grade or Peso Bubble? Jorge G. Gonzalez Trinity University

2. The events of 2001 Economic slowdown in U.S. Mexican government gridlock Great relations with U.S. Decline in the price of oil September 11th Crisis in Argentina Yes to the World Cup!

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. Bumps in the road? Super Peso

15. Inflation Differential vs. Exchange Rate Inflation Exchange Rate 295 188 Source: Banco de México www.banxico.org.mx

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

17. ¿Piedras en el camino? Super Peso U.S. economy Political gridlock Income Inequality and Poverty

18. The Mexican Economy Investment Grade or Peso Bubble? Jorge G. Gonzalez Trinity University

19. The Mexican Economy Investment Grade or Peso Bubble? Jorge G. Gonzalez Trinity University www.trinity.edu/jgonzal1