Crisis in the developed world proved to be a boon for investment into Latin America.
But companies and countries in the region are now suddenly confronted with the prospect that a recovery in the US could turn out to be to their disadvantage.
The volatility that has roiled global markets in recent weeks has highlighted how quickly the cycle can turn. It has come as a rude awakening for Latin borrowers, investors and policymakers who find themselves, with the prospect of rising US interest rates, all of a sudden preparing for an end to an era of abundance.
It’s a movie the region has seen before. In 1994, an abrupt US rate hike triggered a crisis, starting in Mexico, which...
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