The Global Crisis and the Chilean Economy

Abstract

The global crisis that erupted in 2008 is unlike any other crises experienced in Chile and Latin America, because, among other things, it unfolded differently. In effect, it started in the financial markets of the United States, then spread to other advanced economies, and finally to the emerging ones, causing what is now known as the Great Recession. At first, many economists thought that the crisis would end in the developed countries, without affecting supposedly solid and protected economies. Echoing this idea, Chilean Finance Minister Andres Velasco repeatedly stated that the Chilean economy was “bul-letproofed” against the international crisis.