Abstract
Chile from 1974 to the present is one of the few recent examples of a sustained economic liberalisation; fiscal, exchange-rate and monetary policies were manipulated more or less correctly (with the possible exception of wage indexing) to secure free trade, an unrestricted domestic capital market, rapid real growth and a stable currency.
I would like to thank Donald Mathieson of the International Monetary Fund and Philip Brock of Stanford University for their great help in setting up the equation system underlying the formal model of financial control presented in this paper. In his Stanford Ph.D. dissertation, Brock has worked out a more general model of monetary control for a repressed economy than that presented here.
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References
Bhagwali, Jagdish (1978) Anatomy and Consequences of Exchange Control Regimes (New York: National Bureau of Economic Research).
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© 1985 International Economic Association
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McKinnon, R.I. (1985). How to Manage a Repressed Economy. In: Gutowski, A., Arnaúdo, A.A., Scharrer, HE. (eds) Financing Problems of Developing Countries. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06749-7_10
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DOI: https://doi.org/10.1007/978-1-349-06749-7_10
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