The literary movement that Jorge Luis Borges wrote in was Magical Realism. Magical Realism was not only a literary movement but also a style of writing and a technique used in writing. What is magical realism? Magical Realism is the combination of reality with fantasy but in a certain way to make that fantasy seem completely and uterly true. Magical Realism is the style that Borges used and the literary movement that he wrote in.
Magical Realism is well known in South American writers especially because South America is Magical Realism considering al of the strange occurences. For instance in South America one can find villages that are highly developed and nearby one can find villages that are stuck in an uncivilized time. Also with the mixture of different cultures there are many things that appear as Magical Realism like for instance the use of "Santeria".
There are many other writers that incorporate and have incorporated magical realism in their writing including the Gabriel Garcia Marquez in his famous 100 Years of Solitude which in Spanish is called Cien Anos De Soledad. Other writers include Alejo Carpentier and of course Jorge Luis Borges himself.
All of Jorge Luis Borges's stories and novels include traces at least of Magical Realism including El Sur, La Muerte y la Brujula, and especially El Otro. Even in a filmed interview Borges speaks about how he feels as if he is actually two people the Borges who is just a regular man and puts his pants up one leg at a time like any other man. And of course the Borges who is on the spotlight and who has written many books. Magical Realism is not only in his literature and culture but it is a part of his life. He is in fact the father of Magical Realism.