Chile (B): A Changed Jungle for the Latin American Tiger

13 Pages Posted: 21 Oct 2008

See all articles by Wei Li

Wei Li

University of Virginia - Darden School of Business; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Abstract

In the early 1990s, 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 Asian Financial Crisis, the risk-averse behavior of foreign investors caused a slowdown in the inflow of foreign capital to such an extent that the country risked a slowdown in industrial activity and a drain on foreign reserves. The Chilean government must decide what to do. See also the A case (UVA-BP-0461) and the abridged case (UVA-BP-0458).

Keywords: Exchange rate risk, international trade, emerging markets, monetary policy

Suggested Citation

Li, Wei, Chile (B): A Changed Jungle for the Latin American Tiger. Darden Case No. UVA-BP-0462. Available at SSRN: https://ssrn.com/abstract=907947

Wei Li (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
804-243-7691 (Phone)
804-243-7681 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/li.htm

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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