Latin America Risks Overreacting to Commodities Shock

By Adriana Dupita

The region faces particular risk in its economic policy responses to the fallout from the war in Ukraine.

SÃO PAULO – Argentine President Alberto Fernández has declared a different type of war at home – a “war against inflation”. To fight this war, Argentina has implemented price controls and blocked exports of soybean meal and oil in an attempt to prevent “speculators” from reaping gains at the expense of higher prices for consumers. In Brazil, Congress rushed to cut taxes on fuel and cooking gas, and the government is mulling additional measures such as a temporary stipend for truckers, an increase in income transfers and even a change in fuel pricing policy to disconnect...

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