The purpose of this paper is twofold. First, we review the history of indexation in Chile since 1938. We focus on interpreting indexation in the historical, political, and economic context of different stages of Chilean economic development. Second, we analyze the experience of a selected group...

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...

Chile was among the first countries to adopt an inflation target. Its long inflation history had led to widespread backward-looking indexation in goods, labour, and financial markets as well as in policy instruments. While indexation exacerbates inflation inertia, this paper provides evidence...

Indexation is common practice in both developed and developing countries. During recent years, however, many less developed economies that have implemented relatively successful stabilization plans, have included as part of the reform package wage nominalization and/or the use of the exchange...