position paper 定稿

1、COUNTRY: MexicoISSUE: regulate sovereign debt crisis countrys behaviors and protect from the crisis passed on As a big developing country，Mexico plays an important role in the world economy. With the occurrence of Subprime mortgage crisis, the global economy got into a short recession, Mexico being

2、not spared. The subprime mortgage crisis has led to investment losses of financial institutions, causing a liquidity problem. Followed by the global financial crisis, it gradually developed into a global economic crisis, and ultimately contributed to a sovereign debt crisis. The global economy mired

3、 in a haze. Mexico believes that individual countries causing the crisis should assume their responsibilities, clean up the mess of self-inflicted economy and prohibit the crisis passed on. As we all know, some countries use fiscal policy without restrictions in order to stimulate economic developme

4、nt, resulting in the formation of a large number of liabilities, but they eventually become insolvent. Thats the very reason why the sovereign debt crisis occurred .Without restriction to those countries economic behaviors，the negative impacts will further deepen, and even spread to the world. After

5、 sovereign debt crisis happened, some countries have taken a variety of measures, aiming at passing the crisis on to the vast number of developing countries. There are two important means：Firstly, they increase the money supply to repay the debt by inflation. This is just like kill the goose that la

6、ys the golden eggs. Not only does it hurt the interests of developing countries, but also damaging their national credit. Secondly, an increase in net exports or plundered wealth can compensate for the trade deficit，triggering a series of trade protection measures for the purposes. That the recent t

7、rade war between the United States and Mexico is a good example. Trade protection measures seriously prejudice the economic interests of many countries, including Mexico. Also，regardless of opposition from quite many countries，The European Union levies unilaterally aviation carbon tax.As a responsib

8、le and developing country, Mexico responds to the impact of the crisis actively. Mexico thinks that primary mission to stable finance is to increase national foreign exchange reserves, foreign exchange markets stability, and restore to the confidence of international investment to Mexico. By last we

9、ekend (June 18), Mexicos foreign exchange reserves have risen up to $100.096 billion, a new record. This is the first time that its data statistics have broken through the $100 billion mark. Since this year, with the economy gradually recovering from the crisis, the foundation of Mexicos foreign exc

10、hange reserves constantly becomes more and more solid . This year from January to the end of May, the foreign exchange reserves of Mexico were $92.555 billion, $94.469 billion, $95.682 billion, $97.402 billion and $97.994 billion. Whats more ,to deal with the European Union in the aviation carbon ta

11、xes collected compulsively, Mexico 、 China、 the United States、 Russia and India totaled 23 countries have signed Moscow declaration, boycotting the EUs overlord system, to find a new path in order to promote the global aviation emissions.In order to cope with the sovereign debt crisis impact, Mexico

12、 puts forward the following Suggestions:1. The sovereign debt crisis countries should unify knowing, taking deficit into control to a certain degree;2. Reduce all forms of trade protectionism, promote the international economic interaction and cooperation;3. The sovereign debt crisis countries should formulate the standard monetary policy regulation, eliminating any form of paying debts by increasing money s