This project examines the existence of inflation in Mexico since 1973 and
Mechanisms utilized by the people of Mexico to defend against it. Facts and insights are chronologically presented to give the reader a basic comprehension of Mexico’s inflationary history since their integration into the global economy in 1973, focusing on the economic crisis of 1977, 1982, 1987, and 1995, the economic conditions that have surrounded them, and the present economic and inflationary situation. Inflation and economic crisis have consistently plagued Mexico as a result of susceptibility to fluctuations in global prices, government mismanagement, reliance on foreign debt, and foreign speculation.
The external and internal causes of these economic crises result in the inability of Mexican citizens to control their economic situations. Interviews done by the author with 215 adult Mexicans in Mexico City reveal some of the strategies that individuals use to defend their money from inflation, the effects of inflation on these individuals, the effectiveness of their economic defense mechanisms, and their future plans if inflation worsens. The results of this research show that those in the upper classes fare far better in the face of inflation that those in the lower classes.
The socio-economic divisions within Mexican society continue to grow as a result of the general economic situation of the country, and the effects of inflation by the government or society and are unable to take measure to protect themselves effectively. There seems to be little hope for those who have been economically displaced by economic crises and inflation. If this situation continues, the stability of Mexican society may be jeopardized.