Macroeconomic Policy Framework and Economic Performance in Chile: 1974-88
Since 1974 Chile has undergone a radical and widespread process of restructuring. Two major crises had to be faced in 1975 and 1982, in an unfavourable international context that produced a terms of trade deterioration and was characterized by the oil crisis in the 1970s, and by the debt crisis in the early 1980s. They required strong adjustment policies that were superimposed on the long-running structural reforms already being implemented under the military rule. Thus, the macroeconomic framework was modified substantially and subjected to frequent changes over the years. Firms had to adjust to a macroeconomic environment that provided them with varying incentives (for example as given by trade and exchange rate, monetary, fiscal and industrial policies) and a variable structural setting in which to operate (institutions, public administration, role of the state, ownership structure).
KeywordsExchange Rate Total Factor Productivity Trade Liberalization Total Export Structural Reform
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