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Chile: Foreign Shocks and Policy Responses

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  • José De Gregorio

Abstract

In 2009, the world is facing the worst recession in more than six decades. Chile has been no exception. In spite of this outlook, the Chilean economy stands on solid ground, and recent figures show that the recovery has started. This article discusses the fundamentals of the Chilean economy and how economic policies have responded to the strong foreign shocks of the past few years. These range from the severe inflation outburst over part of 2007 and 2008, the consequences of the world’s financial crisis and the current risk of an extended period of low inflation.

Suggested Citation

  • José De Gregorio, 2009. "Chile: Foreign Shocks and Policy Responses," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 10(4), pages 5-24, October.
    • Handle: RePEc:wej:wldecn:394
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    File URL: https://www.worldeconomics.com/Journal/Papers/Article.details?ID=394
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    Cited by:

    1. Patricio Toro, 2019. "The Persistent Effect of a Credit Crunch on Output and Productivity: Technical or Allocative Efficiency?," Working Papers Central Bank of Chile 837, Central Bank of Chile.
    2. Kübra Akyol Özcan, 2023. "Food Price Bubbles: Food Price Indices of Turkey, the FAO, the OECD, and the IMF," Sustainability, MDPI, vol. 15(13), pages 1-21, June.
    3. José De Gregorio, 2010. "Monetary Policy and Financial Stability: An Emerging Markets Perspective," International Finance, Wiley Blackwell, vol. 13(1), pages 141-156, March.

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