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...

In 1975 Chile implemented an ortodox stabilization program. The fiscal deficit was sharply reduced and monetary policy was tight. However, indexation of wages and the exchange rate to past inflation implied that inflation only gradually declined. In fact,

This paper investigates the short run effect of a change in the relative price of imports to exports, in a context of specific capital and labor movement subject to adjustment costs. We present a graphical and mathematical (dynamic) analysis of the adjust