Chile: Institutions and Policies Underpinning Stability and Growth
Occasional Papers, June 28, 2004
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- Chile: Institutions and Policies Underpinning Stability and Growth
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Bibliographic details
- Authors: Eliot Kalter, Steven T Phillips, Manmohan Singh, Mauricio Villafuerte, Rodolfo Luzio, Marco A Espinosa-Vega
- Published: June 28, 2004
- Series: Occasional Papers
- DOI: https://doi.org/10.5089/9781589063259.084
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 within 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.
Key findings
- Fiscal discipline combined with an open trade policy regime is central to Chile’s stability and growth.
- Carefully sequenced financial liberalization, implemented within a strengthened regulatory framework, supported financial sector stability.
- Institutional arrangements were designed to encourage policies oriented toward long-term success, enabling continuity despite adverse external and domestic pressures.
Policy implications and emphasis
- Maintain fiscal discipline as a foundation for macroeconomic stability.
- Preserve an open trade policy regime to support growth and integration with global markets.
- Sequence financial liberalization carefully and strengthen regulatory frameworks to mitigate risks from liberalization.
- Design and uphold institutional arrangements that promote policy continuity and long-term orientation.
Publication and metadata
- Authors: Eliot Kalter, Steven T Phillips, Manmohan Singh, Mauricio Villafuerte, Rodolfo Luzio, Marco A Espinosa-Vega
- Date: June 28, 2004
- Pages: 96
- Volume: 2004
- Issue: 008
- Series: Occasional Paper No. 2004/008
- DOI: https://doi.org/10.5089/9781589063259.084
- Stock No: S231EA
- ISBN: 9781589063259
- ISSN: 0251-6365
- Subjects: Banking, Capital markets, Expenditure, Exports, External debt, Financial markets, Fiscal policy, Fiscal stance, International trade, Pension spending
- Keywords: Asia and Pacific, capital market, Capital markets, Chile, debt, debt sustainability problem, East Asia, Eastern Europe, Europe, Exports, Fiscal stance, GDP ratio, Global, government, government balance, government's policy, market, natural resource, OP, Pension spending, risk model, U.S. dollar
Source: Chile: Institutions and Policies Underpinning Stability and Growth (Occasional Paper No. 2004/008), International Monetary Fund, June 28, 2004.