Abstract
This case has been used since 2004 in Darden's first-year Global Economies and Markets MBA course in the module on exchange regimes and financial crises.In the early 1990s, in response to massive foreign capital inflows, the Chilean government restricted the flow of capital into the country in order to achieve a competitive and stable exchange rate and to control inflation. By the late 1990s, with the onset of the financial crises in emerging-market economies, investors began to pull their capital out of Chile and other emerging markets indiscriminately. This sudden reversal of capital flows was threatening to ignite a balance-of-payments crisis in Chile. The government must decide what to do. This is an abridged version of the A case Chile: A Jungle for the Latin American Tiger (A) (UVA-BP-0461). The A case contains more detailed information on the development experience of Chile, in particular, on the legacy of General Augusto Pinochet and the economic policies of the Chicago boys. This case may also be used with the B case, Chile: A Jungle for the Latin American Tiger (B) (UVA-BP-0462), which gives an update on the policies of the Chilean central bank up to 1999 and discusses of the debate on the economic consequences of the policies. A teaching note (UVA-BP-0458TN) is available.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
