TY - JOUR AU - Gontijo, Cláudio PY - 1995/01/01 Y2 - 2024/03/29 TI - Stabilization policies and trade liberalization: a comparative analysis of Chile, Argentina and Mexico’s experiences JF - Brazilian Journal of Political Economy JA - BJPE VL - 15 IS - 1 SE - DO - 10.1590/0101-31572000-0808 UR - https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1224 SP - 41-57 AB - <p>This article examines Chile’s 1976-81, Argentina’s 1987-92, and Mexico’s 1982-92 stabilization experiences. In these three cases high inflation was curbed after orthodox stabilization policies with liberal structural reforms had been followed by using a fixed exchange rate as an “anchor” for the price level. It suggests the existence of a trade off between internal and external equilibria. Orthodox stabilization policies can be very successful in equilibrating the balance-of-payment without producing price level stability. In contrast, curbing high inflation may require fixing the exchange rate, which, combined with trade liberalization, may produce huge commercial deficits.</p><p><strong>JEL Classification:</strong></p> ER -