Looks good on paper

摘要

Emerging economies' stockmarkets have had a jolly year. Latin America has shared in the fun, despite its past form. Investors have been burnt often since the mid-1990s. In 2001 Argentina defaulted on its foreign debt. The orthodox "Washington consensus" on economic policy has been called into question. And yet this year stockmarkets have soared (see chart). The Argentine and Brazilian indices have both risen by 70% in dollar terms, and Chile's by 40%. The returns from Mexico are less spectacular, thanks in part to a weakening peso, but nonetheless have still beaten America's S & P 500.