The Normalization of Fiscal Policy Must Be an Economic and Political Goal for 2017

Abstract

Fiscal policy has been a pillar of the stabilization of the Chilean economy in recent decades. That stability has been not only economic but also political. Since 1990, democratic governments have been able to channel, with varying results, the social demands of different segments of the population, because they have had the resources to implement reforms and meet those demands without destabilizing the economy. As we will explain, the Government has had resources not only to underpin growth but also to support the economy when the international environment has been unfavorable. Continue reading...