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Chile votes, Copom’s hawks

Chileans vote this weekend to elect members to a convention tasked with re-writing the constitution which, from an economic perspective, may result in a larger role of the state in the economy, higher public spending and larger budget deficits. But regardless of how exactly the new constitution shapes up, a key point is that recent policies have pushed Chile in this direction anyway. Elsewhere, developments in Brazil this week are likely to have strengthened the hawkish voices at the central bank.

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