For those deeply interested in monetary policy,.

The economic recovery of Mexico following the Great Depression was primarily driven by deliberate, expansionary internal policies spearheaded by Secretary of Finance Alberto J. Pani between 1932 and 1933. This analysis challenges the traditional historiographical view that recovery was a byproduct of the external sector (exports). Instead, it demonstrates that Pani’s recognition of the "non-neutrality of money"—the idea that monetary supply directly impacts the real economy—was the catalyst for growth.

By reversing the deflationary "Plan Calles" of 1931, Pani implemented a series of legal and financial reforms that restored public confidence, expanded the money supply through silver coinage and bank rediscounts, and funded public spending through seigniorage without increasing debt or t ...