Chile’s constitution, hope in Argentina, fear in Brazil

The new process to re-write Chile's the constitution will probably lead to a more slim-lined charter, but there are still likely to be major economic implications – notably, higher government spending, larger deficits and a rising public debt ratio. Elsewhere, the positive news on Argentina's economy that followed the country’s victory in the semi-final of the Football World Cup will probably be as good as it gets (for the economy at least). Finally, shifts this week in Brazil towards greater state involvement in the economy under Lula would aggravate the country’s economic problems over the medium term.