Chile's Copper Surplus: The Road Not Taken (B)
Posted: 18 Mar 2012
Date Written: November 19, 2010
In 2009, Chile's Finance Minister Andres Velasco's fortunes had been reversed. His fiscal policy that had come under attack just a year ago had been used to finance a $4 billion fiscal stimulus package amid the global economic downturn. Velasco was now Chile's most popular minister. However, the future of Chile's fiscal policy was questionable with the election of a new president, Sebastian Pinera, the first conservative leader to lead Chile in two decades.
Learning Objective: Debate the political and economic advantages, disadvantages, and challenges of stabilization funds in developing countries; study Chile's experience in the last three decades and the role of politics in encouraging economic growth and deterring economic crises.
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