This case has been used since 2004, the first year of the global economies and markets Darden MBA course in the module exchange regimes and financial crises. In the early 1990s, in response to the massive influx of foreign capital, the Chilean government has restricted the flow of capital into the country in order to achieve a competitive and stable exchange rate and control inflation. By the end of the 1990s, with the onset of the financial crisis in emerging market economies, investors began pulling their capital out of Chile and other emerging markets indiscriminately. This sudden reversal of capital flows threatened to set fire to the balance of payments crisis in Chile. The government must decide what to do. This case also contains information about the development of Chile, in particular, to the legacy of General Augusto Pinochet and economic policy "Chicago Boys." This case can also be used with the B case, "Chile: Latin American jungle Tiger (B)" (UV0920), which gives policy update Chilean central bank until 1999, and discusses the debate on the economic consequences of policy. Education Notes (UV0664) available. Abbreviated version of this case there is, "Chile: Latin America Jungle Tiger (abridged)" (UV0921). It focuses on the economic challenges facing Chile since the early 1990s.
This Darden study. "Hide
by Wei Li, Jose Joaquin Matte Source: Darden School of Business 23 pages. Publication Date: September 6, 2002. Prod. #: UV0863-PDF-ENG
Related Case Solutions & Analyses:
Crisis and Reform in Japans Banking System (B)
8 Reasons Sustainability Will Change Management (That You Never Thought of)
Opening Dot EU (B)
The Xiamen PX Project: the Rule of Contract or Citizens in China Today
Long Beach Unified School District (B): Working to Sustain Improvement (2002-2004)
RelayHealth
BioSidus: Biotecnologia en la Patagonia
China and the WTO: Doing the Right Thing (Abridged)
Launching a Business Accelerator: venVelo
Federal Reserve
