Occasional Papers

Chile: Institutions and Policies Underpinning Stability and Growth

Author/Editor:

Eliot Kalter ; Steven T Phillips ; Manmohan Singh ; Mauricio Villafuerte ; Rodolfo Luzio ; Marco A Espinosa-Vega

Publication Date:

June 28, 2004

Electronic Access:

Link to Abstract

Summary:

This paper presents the primary institutions and economic policies that have led to Chile’s remarkable record of stability and growth over the past twenty years. The core of this policy stance is the combination of fiscal discipline and an open trade policy regime, together with carefully sequenced financial liberalization with in a strengthened regulatory framework.Chile has succeeded in sustaining these policies-despite external and domestic forces to the contrary-because of carefully designed institutional arrangements that encourage policies oriented toward long-term success.

Series:

Occasional Paper No. 2004/008

Subject:

Banking Capital markets Expenditure Exports External debt Financial markets Fiscal policy Fiscal stance International trade Pension spending