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Opinion
John Authers

When Austerity Is a Bigger Problem Than Inflation

Refusing to spend doesn’t equate to fiscal discipline. Mexico’s AMLO needs to enable investment in the country to reverse poor growth under successive presidents.

Mexico City’s Constitution Square, known as the Zocalo. Street traders operate outside the National Palace, home to the president’s official residence, on the far side. 

Mexico City’s Constitution Square, known as the Zocalo. Street traders operate outside the National Palace, home to the president’s official residence, on the far side. 

Photographer: Alejandro Cegarra/Bloomberg

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The unwelcome landmarks continue to fall. Last week, US inflation rose above 9% for the first time in four decades, and the value of a euro dropped below the value of a dollar for the first time in two. Round numbers shouldn’t matter, and both continued trends that had been around for a while. But of course they do.