By Alejandro Foxley

ISBN-10: 0520051343

ISBN-13: 9780520051348

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5% during 1965. This trend was maintained in the following years, with the exception of 1966, when fiscal balance became a high priority goal. 0 Sources: For the federal government deficit: A. Foxley, "Stabilization Policies and Stagflation: The Cases of Brazil and Chile," in A. Foxley and L. , Economic Stabilization in Latin America: Political Dimensions (Peramon, 1980); for public investment: estimates of J. R. Wells, quoted in ibid. The estimate includes the federal government, "autarquias," state governments, municipalities, and state enterprises ("autarquias" are decentralized government agencies).

13) w: Real wages and salaries index based on CPI and official figures for nominal wages and salaries; INE. < previous page page_51 next page > < previous page page_52 next page > Page 52 eliminated. Additional contraction in demand was pursued by attempting to reduce the rate of expansion in money supply and by a contraction in real wages. Other objectives consisted of preparing the ground for long-term structural changes. Policy measures in this area were varied. They consisted of returning to previous owners private property that had been taken over by workers or by the government.

In the political sphere, institutional changes may include, as in Chile, drafting a new constitution that drastically modifies the main political institutions and decision-making processes. The economic policies in Argentina after 1976 and in Chile and Uruguay after 1973 share this emphasis on long-run structural and institutional changes although they differ in the timing and the intensity of the proposed changes. Of the three, Chile is the country where these neoconservative policies and reforms have been applied in a more radical and consistent fashion.

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Latin American Experiments in Neoconservative Economics by Alejandro Foxley

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