Mexico’s strong policy framework has helped cushion the impact of the global crisis. The staff report highlights Mexico’s review under the Flexible Credit Line Arrangement. The flexible exchange rate has adjusted, the inflation targeting framework has provided an anchor for expectations, and the fiscal rule and strengthened public sector balance sheets have averted disruptive moves in fiscal risk premia. Substantial liquidity has been provided to the foreign exchange market. Support has been put in place for a variety of domestic financial market segments.