IMF Staff Country Reports

Chile: Selected Issues

Publication Date:

September 26, 2007

Electronic Access:

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Summary:

This Selected Issues paper analyzes the properties of the fiscal surplus rule, a key pillar of Chile’s macroeconomic framework. The findings suggest that the rule is near the volatility-minimizing efficiency frontier. The paper assesses the vulnerability of the Chilean banking system to external and domestic shocks, and examines recent trade performance. The study finds that both exports and imports have been driven predominantly by demand factors. There is also some evidence that trade liberalization has contributed to the recent trade expansion, but exchange rate effects are only found to have a marginal impact.

Series:

Country Report No. 2007/332

Subject:

Banking Commodities Copper Credit Financial markets Financial sector development Foreign exchange Metal prices Money Prices Real effective exchange rates