Two Crises, Two Cures

In the financial turbulence triggered by Mexico's peso debacle, Argentina and Brazil have taken a heavy battering--but their currencies haven't collapsed. To survive the onslaught, the two countries have taken opposite tacks. Argentina has opted for economic belt-tightening as the price of avoiding a new cycle of devaluation and hyperinflation, while Brazil, less committed to maintaining a strong currency, is letting the real depreciate gradually in order to keep its exports price-competitive.

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