Tequila Crisis 1994: When Pegs Snap

Описание: It was supposed to be Mexico’s decade of growth — rising foreign investment, booming trade after NAFTA, and a stable peso-dollar peg that promised prosperity. But beneath the optimism lurked dangerous imbalances: a soaring current account deficit, dwindling reserves, and political instability that spooked investors.

When Mexico devalued the peso in December 1994, the peg collapsed — triggering a massive capital flight, a stock market crash, and a global contagion that spread to Argentina, Brazil, and beyond. Overnight, confidence evaporated. The IMF and the Clinton administration rushed to organize a historic $50 billion bailout, saving the system but redefining how emerging markets handled financial shocks.

In this video, we break down how the Tequila Crisis unfolded — from currency pegs and speculative attacks to bond spreads and bailout politics. You’ll see how a fragile monetary promise brought Latin America to its knees, and how the lessons from 1994 still echo in every modern crisis — from Asia in 1997 to Turkey and Argentina today.

This isn’t just about Mexico — it’s about the moment globalization learned its limits.

📌 Key Points Covered
Why Mexico pegged its peso to the dollar
How investor confidence vanished overnight
The mechanics of a currency peg collapse
Role of the U.S. and IMF in the bailout
How contagion spread across Latin America
Key lessons for emerging market economies

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