Gustavo Ballvé on November 8th, 2011
Food for thought, Home, Investment Themes, Mental models, Portfolio Management, Signal or Noise

Brazil’s efforts to influence its Latin America neighbors are not always well-received, notes the New York Times. That by itself isn’t a problem, at least not beyond the stated and unstated strategies and goals behind such initiatives. Reaction will always occur as one group or another feels threatened/ diminished/ left behind. However, it is important to keep an eye on the trend. Much has been said about Brazil having “lessons to teach” other LatAm countries, and we have been skeptical (see previous posts here, here and here) given increased government spending and intervention in the economy – alongside rising inflation. Brazil has done well, no doubt, but let’s keep our minds open to our own problems before we try to “export solutions”.

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