Reports of Brazil’s demise and Argentina’s revival have both been greatly exaggerated

It seems to be reversal-of-fortune time in Latin America. Argentina has settled its battle with bondholders and is already preparing to re-enter the bond markets after 14 years as a pariah. Its president, Mauricio Macri, who has pushed aggressive reforms in his three months in office, is being hailed for making the country a “rare bright spot” (paywall) in emerging markets.

Brazil, on the other hand, is bracing for a weekend of unrest after ex-president Luíz Inácio Lula da Silva was...

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