Beware of Economic Overoptimism

Abstract

For some time now, Audis, Ferraris, and Porsches have not been the exclusive preserve of the streets of Santiago's wealthiest districts. Owning a Volvo has ceased to be a status symbol. As an example of the changes that Chileans' consumption pattern has undergone, luxury cars have not only spread across the board (onto the highways, into other regions, into middle-class segments) but are also used more frequently: every day one can see Mercedes or BMWs on the streets. Continue reading...