In 1982, Mexico precipitated an international debt crisis when it defaulted on billions of dollars of international

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In 1982, Mexico precipitated an international debt crisis when it defaulted on billions of dollars of international loans. As a result, the international financial community virtually stopped all loans to Mexico. Suppose it was 1981 (one year before the crisis); you knew the crisis would occur and net lending to Mexico next year would fall to zero. Explain what must happen to Mexico's CA balance if the peso fluctuated freely in the international markets.
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