How AMLO Became Latin America’s Fiscal Hawk
How AMLO Became Latin America’s Fiscal Hawk
The Mexican president’s aversion to debt, macroeconomics and bail-outs risks aggravating the impact of COVID-19.
When Andrés Manuel López Obrador assumed the presidency in Dec 2018, investors worried that public spending would increase if Mexico were to face an exogenous economic shock As the mayor of Mexico City (2000-2005), AMLO had been fairly fiscally responsible But markets distrusted President López Obrador’s populist agenda, particularly given Mexico’s challenging economic outlook Well, currently, the mother of all shocks is hitting the Mexican economy, with economists expecting a 7% GDP contraction in 2020 One would have expected this to be the time for dropping “fiscal...
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