Chile: Staff Report for the 2003 Article IV Consultation

IMF Staff Country Reports, September 26, 2003

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Chile has successfully resisted contagion from neighboring countries difficulties.
Chile's inflation targeting framework has successfully anchored inflation expectations and increased the economy's resilience to external shocks while maintaining price stability.
The floating exchange rate regime is an essential part of the macroeconomic policy framework and continues to serve Chile well.
Interest in recapitalizing the central bank is welcomed.
Executive Directors commend Chile for the transparency of monetary and fiscal policies.
Chile faces the essential task of returning to sustained economic growth and relatively low unemployment.

Continue to maintain and strengthen the inflation targeting framework to preserve anchored inflation expectations and resilience to external shocks.
Preserve the floating exchange rate regime as a central element of the macroeconomic policy framework.
Proceed with measures to recapitalize the central bank to support monetary policy credibility and operational capacity.
Maintain transparency in monetary and fiscal policies to reinforce market confidence.
Prioritize policies that support a return to sustained economic growth and a reduction in unemployment.

Subject: Banking, Central banks, Exports, External debt, Fiscal policy, Fiscal stance, International reserves, International trade, Public debt
Keywords: Asia and Pacific, core inflation measure, CR, Exports, financial market condition, fiscal policies transparency, fiscal policy, Fiscal stance, Global, inflation rate, International reserves, ISCR, monetary policy, oil import, United States-Chile trade agreement, Western Hemisphere

IMF Staff Report — Chile: Staff Report for the 2003 Article IV Consultation (September 26, 2003).