Copper and the Chilean Economy, 1960–98

Author/Editor:

Antonio Spilimbergo

Publication Date:

April 1, 1999

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper concludes that world copper prices play an important role in short-term fluctuations and probably influence long-term growth of the Chilean economy. While many mechanisms may be at work, investment seems to play a major role. In a copper price boom, the higher copper price and associated capital inflows create upward pressure on the real exchange rate. The appreciation of the Chilean peso during the first part of the copper cycle contributes to lower inflation, which could partly explain why real wages grow more rapidly in this part of the cycle.

Series:

Working Paper No. 1999/057

Subject:

Business cycles Commodities Copper Economic growth Economic sectors Inflation Metal prices Mining sector Prices

English

Publication Date:

April 1, 1999

ISBN/ISSN:

9781451847758/1018-5941

Stock No:

WPIEA0571999

Pages:

33

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