That seemed brave, but it risks jeopardising the complete overhaul of the federal system that is crucial to the country's medium-term fiscal stability.

ECONOMIST: Keeping the reform alive | The

Instead, America needs to get its macro-medicine right, in particular by committing itself to medium-term fiscal and monetary stability without excessive short-term tightening.

ECONOMIST: Angst in the United States

Unlike rich countries, this argument goes, Latin America may gain more in the medium term by defending its hard-won fiscal stability and relying on the outside world for stimulus.

ECONOMIST: Latin America's economies