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This book is a comprehensive analysis of Chile's political and economic evolution, particularly focusing on the challenges of constitutional reform and systemic overhaul in emerging democracies. It explores themes of neoliberalism, governance, and reform under instability, using Chile as a case study to illuminate the broader implications for countries in the Global South. Drawing on institutional theory, political economy, original data, and comparative analysis, it unpacks the roots of Chile’s crisis: party system fragmentation, voter–party erosion, rupturist rhetoric, and elite misdiagnoses. It is relevant to scholars, policymakers, and risk analysts seeking to understand the complexities of democratic transitions, offering lessons on balancing the rewards of change with the risks of instability. At its core, the book sets out to solve the problem of how to effectively implement constitutional and systemic reforms in a way that promotes stability, equity, and long-term success.
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This collection focuses on the multiple consequences of neoliberal policies in Chile and places its "showcase" status and its re-democratization process into serious question. The volume argues that breaking the status quo is possible, urgent and necessary.
The economic, political and social situation in Chile shows a country in transition. Some observers anticipate a broad “reboot” of the nation. While Chile is still seen by many as an example of progress in South America and of developmental potential in the global South, it faces a complex political constellation, particularly in the aftermath of the re-election of Michelle Bachelet. Many wonder how social and institutional innovations can be incepted without interrupting the country’s remarkable success over the past decades. This book provides an interdisciplinary analysis of Chile’s situation and perspectives. In particular, it addresses the questions: What is Chile’s real socio...
"Exchange rate policies depend on portfolio choices, and portfolio choices depend on anticipated exchange rate policies. This opens the door to multiple equilibria in policy regimes. We construct a model in which agents optimally choose to denominate their assets and liabilities either in domestic or in foreign currency. The monetary authority optimally chooses to float or to fix the currency, after portfolios have been chosen. We identify conditions under which both fixing and floating are equilibrium policies: if agents expect fixing and arrange their portfolios accordingly, the monetary authority validates that expectation; the same happens if agents initially expect floating. We also show that a flexible exchange rate Pareto-dominates a fixed one. It follows that social welfare would rise if the monetary authority could precommit to floating"--NBER website
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