The global financial crisis and the consequences in the economy of Mexico

Abstract

The present work has as object of study, to explain, in a simple and easy way, some important ideas that John M. Keynes had about the “law” of Jean Baptiste Say. Especially the failures that this law presents, taking into consideration that not everything that its produced in an economy tends to be entirety sold in the market for goods and services, generating an important crisis in the capitalist economy.   One of the main ingredients of the economic crisis is given by the low down of the prices of these goods and services. This could be the starting point in order to explain some of the crisis that have been generated since the 1929 economic crash and the current crisis in the U.S. caused in 2008 and was extended to the European Union, especially the most vulnerable countries of Europe and its implications that all this may have on the economy of Mexico.