This book traces the origins of international debt and recent trends that burden it, including the effect of oil price shocks, high interest rates, and world recession.

The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.

This paper explores the reasons behind the recent transformation and upturn of the Mexican economy. the changes are the result of the authorities' determination to stick with a difficult reform program since the early 1980s, supported by multilateral financial institutions, creditor countries, and commercial banks.