Cracking the Brazil nuts. (Brazil develops an austerity package and is likely to receive aid from the International Monetary Fund).

Economist (US), The, October, 1998

Brazil has implemented an austerity package and will probably receive aid by the International Monetary Fund. Investors are still hesitant and will probably wait to see if the government can manage its financial policies and if the currency remains strong.

SAO PAULO AND WASHINGTON, DC

This week's austerity package should trigger long-awaited IMF aid for Brazil. But will it be enough to halt the spread of financial chaos to Latin America?

FOR the past two months the focus of attention for students of distressed emerging markets has been Brazil, Latin America's largest economy, and the eighth-biggest in the world. It has lost more than $30 billion in foreign-exchange reserves. Markets took fright at its large budget and current-account deficits,...

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