Mexico's economy?

Question

when did mexico's economy change from a crawling peg exchange rate system to a floating exchange rate regime?

Answer 1

http://en.wikipedia.org/wiki/Economy_of_...

since 1994...

The devaluation of currency and floating exchange rate are all imposed by the World Bank on debtor nations.  This would be one of them.

Answer 2

Yes, as a condition of the bailout of the peso in 1994/1995. Before then, Mexico had pegged its currency against the dollar, but by 1987 inflation had become so bad that for one dollar you could make 10,000 phone calls on a mExican pay phone, or ride the Mexico City Metro a thousand times. Many hardware stores simply drilled holes in the 20 centavos piece for washers.

The Mexican government had spent so much in public goods, and devalued the currency to pay off debts, that by 1994 inflation was out of control. Clinton arranged a loan by the US via the IMF/World bank at an 8% interest rate and Mexico agreed to change their monetary and debt policies.

The float is one mechanism that forces a nation to stay honest about the value of their money. According to Thomas Friedman, the Mexican government finance ministers actually installed media to tell them the value of the peso every minute of the day at their desk. This apparently was  major change for the government.