Home / Articles / Round Up the Usual Suspects: The Latest Latin American Debt Crisis
The Mexican peso crisis of December 1994 seemed to mark a turning point in the Latin America’s fortunes. Perhaps the long and sorry tale of improvident borrowing, squandered opportunities, hyperinflation, and debt default would end happily at last. The U.S. Treasury provided massive financing to stop a financial meltdown south of the border. Lo and behold, Mexico restored financial equilibrium, paid back its debts, and—against the weight of history—initiated a virtuous circle of transformation and modernization that continues to this day.