A tight rein

A tight rein

  In Latin America, central bankers haven’t had it easy over the past year. A succession of hikes in US interest rates, a stronger dollar and an escalating trade war have spurred capital flight from the region, putting pressure on currencies and inflation. Mexico took the brunt of it — and more. It had a presidential election this year, and last year a major earthquake and a surge in energy prices. By all accounts, the Mexican peso could have at any point crashed like Argentina’s, says AJ Mediratta, president of New York-based Greylock Capital Management. “But it didn’t.” Instead, the peso appreciated this year, gaining 1.6% in the first three quarters of 2018. Argentina’s, by comparison, ha

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