ABSTRACT
I discuss in this chapter how the current economic transformation of Mexico has been successful but remains incomplete, with major policy measures pending for the restructuring of Mexican industry and state enterprises, and with an urgent need to reduce inflation and consolidate economic stabilization. With inflation at its present level of 28 per cent and many public-sector prices still under artificial control, the prospects of a rapid reduction in inflation appear relatively slim, as the Mexican government has given every signal that it wants to avoid shocks or dramatic fiscal action.
