Geography curtails Chilean expansion

By Mark Artherton, fund manager at F&C Management Chile has tried over the past 15 years to create the textbook small open economy and has achieved this goal except in a few small areas. The country is impacted negatively by its geographic position. The latest fad in the currency markets in Latin America is to short the Chilean peso as a proxy for the Brazilian reals. This is symptomatic of the problems that developing nations face in the current economic environment and under the prevailing system. The real links between the Chilean economy and the Brazilian economy are very...