A pesar del esfuerzo de reformas de las décadas pasadas, el desempeño económico y social de los países de América Latina durante los noventa fue bastante pobre. La excepción fue Chile, que creció a tasas promedio de 7% durante la mayor parte de la década y redujo significativamente su...

Private capital flows returned to the developing countries in the late 1980s, only a few years after the debt crisis. Underlying this surge in inflows there is a decrease in interest rates and a slowdown in economic activity in the developed countries, and an improvement in economic prospects...

This paper analyses Latin America’ monetary policy during the 90’s. The paper starts discussing the options that exist to carry out monetary policy, following by a discussion of the actual mechanisms chosen by the individual countries. Then, it goes on to study the main determinants of...

The Central Bank of Chile was founded in 1925, to provide the country with an institution that could stabilize the currency, regulate interest and discount rates, and avoid disruptions in the country’s financial, industrial en economic development (Decree Law N°486, August 22nd, 1925). But a...

Inflation targeters (ITers) have been very successful in meeting their inflation targets (ITs). Industrial output sacrifice during inflation stabilization and industrial output volatility has frequently been lowered after IT adoption. ITers have consistently reduced inflation forecast errors...

In this paper we present a small macroeconomic model of the Chilean economy. The model comprises four equations that capture the evolution of the main macroeconomic variables, output, inflation, policy interest rate, and the real exchange rate. Analytically, the model is expressed in a way such...