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Economy & Business - June 2005
ECUADOR: Radical rhetoric
The Palacio government's leftist rhetoric has frightened foreign investors. The price of Ecuadorean bonds dropped by almost 10% when the Gutiérrez government was overthrown. Since this initial fall there has been a bit of a recovery as fears about the new government's commitment to paying its bills subsided. Even so, there is plenty of uncertainty over what the new economic team may do. The key drivers of economic policy are heterodox local economists. These are people who argue that creating free markets are not the only object of economic policymaking.
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