Brazil’s government spurred big gains in stocks in recent years by pursuing austerity policies that allowed its central bank to cut interest rates to all-time lows. Now, some worry efforts to fight Covid-19 could unravel all that.
Brazil has more coronavirus deaths than any other emerging-markets country and its economy has taken a hit. To counter that, the government is ramping up spending and expectations are that it will have to do even more, triggering concerns Brazil could slide back to populist overspending that led...
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