Jump to ContentJump to Main Navigation
The Decline of Latin American EconomiesGrowth, Institutions, and Crises$
Users without a subscription are not able to see the full content.

Sebastian Edwards, Gerardo Esquivel, and Graciela Marquez

Print publication date: 2007

Print ISBN-13: 9780226185002

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226185033.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 29 June 2022

Establishing Credibility

Establishing Credibility

The Role of Foreign Advisors in Chile's 1955–1958 Stabilization Program

(p.291) 8 Establishing Credibility
The Decline of Latin American Economies

Sebastian Edwards

University of Chicago Press

This chapter investigates an important historical stabilization episode in Chile, a country with one of the longest histories of chronic inflation in the world, and which, starting in the late nineteenth century, suffered recurrent and increasingly frequent inflationary outbursts. Of the many stabilization programs adopted to tackle this problem, the 1955–1958 package implemented with the advice of the United States consulting firm Klein-Saks, is, undoubtedly, one of the most fascinating. The chapter argues that the foreign advisors of the Klein-Saks Mission gave initial credibility to the stabilization program launched in 1955, playing the role of independent, nonpartisan technocratic arbiters. However, providing initial credibility was not enough to ensure success. In spite of supporting trade reform, foreign exchange rate reform, and the deindexation of wages, Congress failed to act decisively on the fiscal front.

Keywords:   Chile, inflation, stabilization programs, Klein-Saks Mission, trade reform, foreign exchange, rate reform, deindexation, wages

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.