Tequila Effect Definition
Tequila Effect is the informal term
referring to the impact of the 1994 Mexican economic
crisis, widely known as the Mexican peso crisis. The crisis was caused by the sudden devaluation
of the Mexican peso in December 1994 due to president Zedillo's reversal
of the former government's policy of tight currency
controls. The term is used to describe the domino effect that triggered economic crises in Argentina, Brazil, and other countries in Latin America.