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...

This paper analyzes Latin America’s recent experience with the use of inflation targeting (IT) while the region has made substantial progress toward eradicating high inflation. The paper assesses the implementation and results of inflation targeting in Latin America from a broad perspective....

The main purpose of this paper is to analyze the process by which Chile was able to reduce inflation during the 1990s. In this period inflation was gradually reduced from close to 30% per annum in 1990 to only 6% in 1997. The paper concludes that three factors were important in helping to...

This study provides a thorough review of the post-1998 slowdown in economic growth in Chile. This was a rather turbulent period in economic history, and as such, it motivates to carry on research on the likely causes of the slowdown and its possible solutions. The authors use an econometric...

The authors present an investigation, through empirical analysis, of manufacturing pricing in Chile, Israel, and South Korea during periods of trade liberalization. Given different experiences in each country, it looks at how manufacturing pricing rules change during the liberalization process....

This paper reviews the recent Latin American experience with policy reforms and then goes on to draw lessons for Africa. The lessons apply to both macroeconomic and micro-institutional reforms. On the macroeconomic side it concludes that it is important to achieve and maintain macroeconomic...