That is why our hosts, our Mexican friends, decided to arrange a special stand-by financial package under the umbrella of the IMF, “blindaje” as we say in Spanish, to insure against any market surprise during the electoral season despite the strength of their economy. This is a good example for the entire region.
Significant near-term reductions in federal spending or large increases in taxes would impose an additional drag on the economy at a time when aggregate demand is already weak. Indeed, under current law, federal fiscal policy is slated to impose considerable restraint on the growth of aggregate demand next year.