Mexico: Selected Issues

Author: International Monetary Fund

Volume/Issue: Volume 2005 Issue 428

Publication date: December 2005

ISBN: 9781451825657

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Banks and Banking , Finance , Investments and Securities-General , Economics- Macroeconomics , Money and Monetary Policy , ISCR , CR , saving , lending , firm , private saving , saving rate , bank lending , external saving , informal firm , Bank credit , Private savings , Securities markets , Government securities , Credit , Global , East Asia

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Summary

This Selected Issues paper considers the “informal sector” in Mexico. In Mexico and many other countries, the informal sector represents a large share of total employment. The paper reviews the literature on informality, with special focus on findings for Mexico, and develops a theoretical model that highlights the importance of externalities and the distortion associated with the informal sector. The analysis provides insight into the kinds of policy measures that might sustainably reduce the size of the informal sector. The paper analyzes financial saving in Mexico.