> On the other hand, in the absence of the peso support
> package it is hard to see how real wages in Mexico could have wound
> up higher than they are today,
Why? It would seem to me that removing the need to service foreign debt through straight default would have had a positive impact on Mexican living standards, would it not? Of course, there is the reduced access to capital markets to consider, but I suspect that since 1994 Mexico's expenditures in foreign debt service have been higher than foreign capital inflows. And investors have short memories, anyway.
>
> Brad DeLong
-- Enrique Diaz-Alvarez Office # (607) 255 5034 Electrical Engineering Home # (607) 272 4808 112 Phillips Hall Fax # (607) 255 4565 Cornell University mailto:enrique at ee.cornell.edu Ithaca, NY 14853 http://peta.ee.cornell.edu/~enrique