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Brazil & Southern Cone - April 2020

Fiscal austerity out the window – for now

As they buckle under the combined effects of the coronavirus (Covid-19) pandemic, the gathering global economic recession, and a slump in commodity prices, Latin American countries are all scrambling to launch countercyclical fiscal measures. But major economies such as Brazil, Argentina, and Chile are responding in different ways, as the unprecedented crisis is standing traditional thinking about fiscal austerity on its head.

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