The authors analyze the response of private and public investment to external shocks, macroeconomic adjustment, and structural reform in three sets of countries: (a) countries that pursued structural reform and liberalization in Latin American in the 1970s (Chile) or the 1980s (Mexico and...

The authors construct, estimate, and simulate a macroeconomic model for Chile. This model allows aggregate supply and demand factors to interact in determining such key economic variables as inflation, the real wage, the real exchange rate, real output and employment, and the current account...

This paper evaluates Chile's stabilization policies since the early 1970s. Four episodes are examined: (a) the high inflation at the beginning of the military regime when inflation was close to 1000 percent per year; (b) the orthodox stabilization program of 1975; (c) the exchange rate-based...

A purpose of this book is to present recent World Bank analytical work on the causes of violence and conflict in Colombia, highlighting pilot lending programs oriented to promote peace and development. The Bank's international experiences in post-conflict situations in different countries and...

Early in 2000, Ecuador, confronted with a serious economic crisis, adopted the US dollar as its national currency, This book examines the conditions that led to this action, describing the repeated cycles of crisis and failed stabilization that fatally undermined confidence in the Ecuadorian...

Bulgaria's shaky macroeconomic situation is a serious obstacle for a smooth transition from central planning to markets. It has to correct large current account deficits with the convertible currencyarea. It has to eliminate inflationary pressures and large price distortions, and get into a path...

After relatively stable income distribution in the 1960s, and a redistribution toward low income groups under Allende, income shares declined for the 40 percent of the population (low and lower middle income groups) under Pinochet. The top 20 percent benefited most from the income shift away...

The authors empirically explore the inflationary process in Hungary. Using monthly data, they provide econometric estimates of the determinants of inflation for 1990-92. Empirical estimates of price equations - both consumer price index (CPI) and producer price index (PPI) - show the exchange...

This paper simulates a model of joint determination of private investment spending, aggregate investment profitability and the level of GDP for Chile. It addresses the following issues: (a) sharp cycles in economic activity - the boom of 1980-81, the steep recession of 1982-83, and the recovery...

Recent literature suggests that because investment expenditures are irreversible and can be delayed, they may be highly sensitive to uncertainty. The authors briefly summarize the theory, stressing its empirical implications. Then, using cross-section and time-series data for a set of developing...