The cost of singlefigure inflation in the West has been the deepest and most sustained recession ever: probably deeper than the Thirties. This happened, because the money supply has been brought control' but because Western have validicule vinced manufacturing industry that they will no longer serve as guarantors of growth. rirms cannot expect to be bailed out by banks who will be bailed by governments, and so they Lave finally kicked the postwar habit of running for credit to finance Mexican nest against US $ quarterly averag Total foreign debt' Debt 82* 1977 Mexico's debt burden becomes intolerable: the peso crashes dependence on foreign capital.
Once the slump begar to bite into world demand for these products, the Mexican left, as the Economist succinctly put 'without bean'.
Mexico's bankruptcy is sending shockwaves through the world's big cues out not out Or concern for the people who must now suffer a 70 per cent devaluation and