debt crisis seemed to be over, as most Latin American economies
grew themselves out of debt in the 1990s.
1994, however, Mexico devalued the peso and had to work out another
adjustment program with the IMF. In 1998, Brazil was shaken by a
loss of investor confidence. Flight from the Brazilian real began.
Prompt action by the IMF and other international lenders in cooperation
with Brazil’s government, helped stabilize the economy. In
a globalized economy, no major country could be allowed to fail.