Mexican Economy

I believe you are right Rob. Mexico, compared to other countries, including the US has been more disciplined with regard to debt.

This is from the Federal Reserve Bank of Dallas on Sept 23, 2023:

The unusual strength of the peso, which makes up 13.8 percent of the Fed’s trade-weighted dollar index, can be attributed to short-run factors such as high interest rate differentials relative to the U.S. and investor positioning, as well as longer-run macroeconomic fundamentals.

The real (inflation-adjusted) policy rate differential between Mexico and the U.S. widened notably in 2021, when Banco de México raised its policy rate, initiating monetary policy tightening almost a full year before the Fed started its tightening cycle. Mexico’s central bank cumulatively increased its policy rate 7.25 percentage points, exceeding the Fed’s 5.25-percentage-point rise.

This is from PBS, not exactly a far right media outlet, on Aug 16, 2023:

Even President Joe Biden has some regrets about the name of the Inflation Reduction Act: As the giant law turns 1 on Wednesday, it’s increasingly clear that immediately curbing prices wasn’t the point. While price increases have cooled over the past year — the inflation rate has dropped from 9 percent to 3.2 percent — most economists say little to none of the drop came from the law.

NEW YORK/WASHINGTON, Nov 10 (Reuters) - Moody's on Friday lowered its outlook on the U.S. credit rating to "negative" from "stable" citing large fiscal deficits and a decline in debt affordability, a move that drew immediate criticism from President Joe Biden's administration.

Back to the Federal Reserve of Dallas:

In 2022, Mexicans living in the U.S. sent home a record $55.9 billion, representing 4.5 percent of Mexican GDP. Mexico’s current account deficit would have exceeded 4 percent of GDP over the past three years, meaning the country’s demand for foreign currencies would have increased, exerting downward pressure on the peso. The remittances helped push Mexico’s current account deficit to 1.2 percent of GDP in 2022.

In the US, the current account deficit grew from an average of 2.3% from 2012 - 2119 to 2.9% in 2020, 3.6% in 2021 and 3.7% in 2022.

The US doesn't have foreign remittances, so it borrows to plug the gap.