The peso, which had declined to 7.4 to the dollar, has been trading stronger than that recently. Interest rates, which had exceeded 80 percent, are below 40 percent. The Bolsa, Mexico's stock exchange, has recovered a substantial portion of its early loss in peso, if not dollar, terms. Of course, financial Mexico has benefited at the expense of real Mexico, although there was no choice in the matter. A sharp spike in inflation and a sharp decline in economic activity have resulted from the devaluation and its aftermath.
Unemployment is at very high levels.
When a country is forced to eliminate its trade deficit and capital inflow almost overnight, its standard of living is necessarily reduced under the best circumstances. Policies that would prolong the adjustment would make more of an adjustment necessary. The most urgent requirement to restore economic health is control over the money supply by an independent central bank. That requirement is apparently being met. Back to Texas for a moment.