The Orthodoxia Facing The Mexican Development (1934-1950)

Abstract

The purpose of this presentation is to analyze the Ludwig von Mises diagnosis made about the Mexican economy and the recommendations and proposals for the economic policy that, in his opinion, the Mexican government should have supported to make the country to overcome its economic backwardness. This article is structured as follows: We will begin by explaining the birth of orthodox thought, or as many others call it development policies, in Mexico with the policies that where implemented by President Lázaro Cárdenas. This will be followed by an explanation of the controversies between government and the orthodox thought, which where created from the institutional changes generated in the governments financial areas from 1937 and 1941. We will finish with the proposals for economic development in México in his long essay The economic problems in Mexico, yesterday and today. All of them coincide with a group of businessman and workers from the Mexican financial sector. And last but not least we will make a reflection on the intellectual influence of the Austrian economist in Mexico by taking a look at Faustino Ballvé’s case.