Case 204 - North American Economic Integration: Monetary and Exchange Rate Aspects

Maxfield, Sylvia

While the trinational negotiations on the North American Free Trade Agreement proceeded in earnest during the early 1990s, Mexico and the United States conducted a related set of discussions on the prospect of exchange rate coordination behind the scenes. Part A of this case study discusses the U.S. and Mexican positions on exchange rate coordination, while Part B describes the peso’s devaluation after NAFTA’s launch in 1994.