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Chile's experience with stabilization, revisited

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  • Corbo, Vittorio
  • Solimano, Andres

Abstract

This paper evaluates Chile's stabilization policies since the early 1970s. Four episodes are examined: (a) the high inflation at the beginning of the military regime when inflation was close to 1000 percent per year; (b) the orthodox stabilization program of 1975; (c) the exchange rate-based stabilization of February 1978-June 1982; and (d) the post-1984 adjustment period with a large real devaluation and low inflation. Finally an overall evaluation of the post-1973 experience with stabilization is provided.

Suggested Citation

  • Corbo, Vittorio & Solimano, Andres, 1991. "Chile's experience with stabilization, revisited," Policy Research Working Paper Series 579, The World Bank.
    • Handle: RePEc:wbk:wbrwps:579
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    References listed on IDEAS

    as
    1. Corbo, Vittorio, 1982. "Monetary policy with an overrestricted demand for money equation : Chile in the 60's," Journal of Development Economics, Elsevier, vol. 10(1), pages 119-126, February.
    2. Solimano, Andres, 1986. "Contractionary devaluation in the southern cone : The case of Chile," Journal of Development Economics, Elsevier, vol. 23(1), pages 135-151, September.
    3. L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
    4. Edward, Sebastian, 1986. "Are Devaluations Contractionary?," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 501-508, August.
    5. Haque, Nadeem U. & Montiel, Peter, 1991. "Capital mobility in developing countries: Some empirical tests," World Development, Elsevier, vol. 19(10), pages 1391-1398, October.
    6. International Monetary Fund, 1990. "Capital Mobility in Developing Countries: M386Some Empirical Tests," IMF Working Papers 1990/117, International Monetary Fund.
    7. Kiguel, Miguel A. & Liviatan, Nissan, 1988. "Inflationary rigidities and stabilization policies," Policy Research Working Paper Series 4, The World Bank.
    8. Stanley Fischer, 1988. "Real Balances, the Exchange Rate, and Indexation: Real Variables in Disinflation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(1), pages 27-49.
    9. Corbo, Vittorio & de Melo, Jaime, 1987. "Lessons from the Southern Cone Policy Reforms," The World Bank Research Observer, World Bank, vol. 2(2), pages 111-142, July.
    10. Stanley Fischer, 1984. "Real Balances, the Exchange Rate and Indexation: Real Variables in Disinflation," NBER Working Papers 1497, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. C. Pietrobelli, 1994. "Trade liberalisation and industrial response: the case of Chile (1974-1987)," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 47(191), pages 431-468.
    2. Dornbusch, Rudiger & Fischer, Stanley, 1993. "Moderate Inflation," The World Bank Economic Review, World Bank, vol. 7(1), pages 1-44, January.
    3. Juan Eduardo Coeymans, 1992. "Productividad, Salarios y Empleo en la Economía Chilena: un Enfoque de Oferta Agregada," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 29(87), pages 229-264.
    4. Calvo, Guillermo A. & Reinhart, Carmen M. & Vegh, Carlos A., 1995. "Targeting the real exchange rate: theory and evidence," Journal of Development Economics, Elsevier, vol. 47(1), pages 97-133, June.
    5. Robert S. Pindyck & Andrés Solimano, 1993. "Economic Instability and Aggregate Investment," NBER Chapters, in: NBER Macroeconomics Annual 1993, Volume 8, pages 259-318, National Bureau of Economic Research, Inc.
    6. repec:ilo:ilowps:397932 is not listed on IDEAS
    7. Patricio Rojas & Vittorio Corbo, 1992. "Crecimiento Económico de América Latina," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 29(87), pages 265-294.
    8. Felipe Larraín, "undated". "Estabilización, Tipo de Cambio Real e Ingresos Fiscales," Documentos de Trabajo 173, Instituto de Economia. Pontificia Universidad Católica de Chile..
    9. Solimano, Andrés., 2007. "Employment creation, real wages and job quality : how much aggregate economic growth delivers? The case of Chile," ILO Working Papers 993979323402676, International Labour Organization.
    10. Calvo, Guillermo A. & Reinhart, Carmen M. & Vegh, Carlos A., 1995. "Targeting the real exchange rate: theory and evidence," Journal of Development Economics, Elsevier, vol. 47(1), pages 97-133, June.
    11. Laurence Ball, 1993. "The Dynamics of High Inflation," NBER Working Papers 4578, National Bureau of Economic Research, Inc.
    12. Rapetti, Martin & Palazzo, Gabriel & Waldman, Joaquin, 2023. "Planes de estabilización: Evidencia de América Latina [Stabilization plans: Evidence from Latin America]," MPRA Paper 118910, University Library of Munich, Germany.
    13. Felipe Larraín, 1997. "Estabilización, Tipo de Cambio e Ingresos Fiscales: El Contexto Latinoamericano," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 34(102), pages 161-188.

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