This paper studies the impact of fiscal policy on economic activity by using Chilean annual data from 1833 to 2000. The data allows us to disentangle the impacts on economic activity -- due to the large variation in fiscal policy in the period under study -- by using a SVAR methodology. The...

This document is centered in analyzing the mechanisms of transmission of the monetary and real exchange rate imbalances on the inflation rate. It initially focuses on determining the balances on these markets, and therefore, it studies the money demand and the long run trajectory of the real...

This paper analyzes the role played by BancoEstado in providing credit during the 2008-2009 financial crisis. An analysis of the data shows that BancoEstado increased its credit significantly, particularly in terms of loans to firms, increasing its market share and remaning profitable. A large...

In this paper we study the heterodox stabilization plans of Argentina 1985 (Plan Austral) and Brazil 1986 (Plan Cruzado). Both plans considered that the main cause of inflation was inertia, due to indexation of wages, exchange rates and financial instrume

In this paper the role of external shocks to the Chilean economy is investigated. The empirical evidence indicates that a deterioration of the terms of trade, is the main fact explaining the decline of GDP from trend.