FINANCIAL PANIC IN LATIN AMERICA

Mexico has undoubtedly suffered a period of social, political and economic turmoil, but the recent events are very far from being catastrophic [Jan. 23]. The country should never again overvalue its currency and create huge trade deficits, leaving it vulnerable to internal and external forces. However, we should never give in to pessimism. The overvaluation of the Mexican peso has been eliminated, and this step will provide badly needed oxygen for Mexican industry. Inflation will go down again, the exchange rate with the dollar will be adjusted, and Mexican shares will climb to their fair value. The prophets of gloom will...

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