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The copper sector, fiscal rules, and stabilization funds in Chile: Scope and limits

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  • Andrés Solimano
  • Diego Calderón Guajardo

Abstract

Historically, Chile has been an economy dominated by mineral and agro-industrial products and subject to frequent external shocks particularly in copper prices. Since the 1980s, the authorities have developed various mechanisms to cope with these shocks and dampen their effects on the domestic business cycle. These mechanisms include a fiscal rule, an economic and social stabilization fund, a pension reserve fund, and a (informal) 'defence fund'.

Suggested Citation

  • Andrés Solimano & Diego Calderón Guajardo, 2017. "The copper sector, fiscal rules, and stabilization funds in Chile: Scope and limits," WIDER Working Paper Series wp-2017-53, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-53
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    References listed on IDEAS

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    1. José De Gregorio & Felipe Labbé, 2011. "Copper, the Real Exchange Rate and Macroeconomic Fluctuations in Chile," Working Papers Central Bank of Chile 640, Central Bank of Chile.
    2. Solimano, Andres, 2016. "Global Capitalism in Disarray: Inequality, Debt, and Austerity," OUP Catalogue, Oxford University Press, number 9780190626273.
    3. Jeffrey Frankel, 2013. "A Solution to Fiscal Procyclicality: The Structural Budget Institutions Pioneered by Chile," Central Banking, Analysis, and Economic Policies Book Series, in: Luis Felipe Céspedes & Jordi Galí (ed.),Fiscal Policy and Macroeconomic Performance, edition 1, volume 17, chapter 9, pages 323-391, Central Bank of Chile.
    4. Klaus Schmidt-Hebbel, 2012. "Fiscal Institutions in Resource-Rich Economies: Lessons from Chile and Norway," Documentos de Trabajo 416, Instituto de Economia. Pontificia Universidad Católica de Chile..
    5. Helmut Franken & Guillermo Le Fort & Eric Parrado, 2006. "Business Cycle Responses and the Resilence of the Chilean Economy," Central Banking, Analysis, and Economic Policies Book Series, in: Ricardo Caballero & César Calderón & Luis Felipe Céspedes & Norman Loayza (Series Editor) & Klaus Sc (ed.),External Vulnerability and Preventive Policies, edition 1, volume 10, chapter 4, pages 071-108, Central Bank of Chile.
    6. Luis Felipe Céspedes & Eric Parrado & Andrés Velasco, 2014. "Fiscal Rules and the Management of Natural Resource Revenues: The Case of Chile," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 105-132, October.
    7. Solimano,Andrés, 2012. "Chile and the Neoliberal Trap," Cambridge Books, Cambridge University Press, number 9781107003545.
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    Cited by:

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    5. Ha-Joon Chang & Amir Lebdioui, 2020. "From fiscal stabilization to economic diversification: A developmental approach to managing resource revenues," WIDER Working Paper Series wp-2020-108, World Institute for Development Economic Research (UNU-WIDER).

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