Argentina’s Warning to Latin America: “I Am You, Tomorrow”

By Eduardo Levy Yeyati

Escaping Latin America’s middle-class trap means making real social investments, not cutting one-off checks.

BUENOS AIRES - In Brazil in the 1980s, a television ad for Orloff vodka showed a man enjoying a drink on a Saturday night, only to be confronted at the bar by his own hungover self from the morning after. “Eu sou você amanhã,” he told himself: I am you, tomorrow. The ad’s premise was that Orloff vodka would not leave a hangover, but the “Orloff effect” came to have another meaning. As Brazil considered an exchange rate stabilization plan, Argentina’s own failed experiments loomed in the background. Some Brazilians had the ominous feeling of witnessing the poor state of...

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