Economic growth in Chile since the mid 1980s has been remarkable for its high level and persistence. This paper explores the factors behind the high growth rates of the past 15 years and analyzes the extent to which they can be sustained in the future. The first part of the paper presents some...

The question that this paper examines is what policy bias there may be when monetary and fiscal authorities have different preferences regarding the importance of closing the output and inflation gaps created by adverse economic shocks. For this purpose, the paper follows a game-theoretic...