Factors that led to worsening conditions in Mexico's 1994-1995 financial markets include the increased uncertainty from political shocks
This is further explained below.
Generally, The Mexican financial crisis of 1994-1995, often known as the "Tequila Crisis," refers to the crisis that began following Mexico's devaluation of the peso in December of 1994. The Tequila Crisis was also known as the "Mexican Financial Crisis of 1994-1995."
In conclusion, The increasing unpredictability as a result of political shocks was one of the contributing factors that contributed to deteriorating circumstances in Mexico's financial markets in 1994 and 1995.
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