This case is used in the Darden in the first year of the global economy and markets MBA course in the module since 2004 to exchange regimes and financial crises. In the early 1990s, in response to a massive influx of foreign capital, the Chilean government to restrict the flow of capital into the country to achieve a competitive and stable exchange rate and to control inflation. In the late 1990s, with the onset of the financial crisis in the emerging markets, investors began pulling their capital … Read more »

This case is used in the Darden in the first year of the global economy and markets MBA course in the module since 2004 to exchange regimes and financial crises. In the early 1990s, in response to a massive influx of foreign capital, the Chilean government to restrict the flow of capital into the country to achieve a competitive and stable exchange rate and to control inflation. In the late 1990s, with the onset of the financial crisis in the emerging markets, investors began pulling their capital from Chile and other emerging markets indiscriminately. This sudden reversal of capital flows threatened to ignite a balance of payments crisis in Chile. The government must decide what to do. This is an abridged version of the A case “Chile: A Jungle for the Latin American Tiger (A)” (UV0664). The case A contains detailed information on the development experience of Chile, and in particular the legacy of General Augusto Pinochet and the economic policies of the “Chicago Boys”. This case can also be used with the B case, “Chile: A Jungle for the Latin American Tiger (B)” (UV0920), which is an update to the policy of the Central Bank of Chile until 1999 and discussed the debate over the economic consequences of policy. A teaching note (UV0664) are available.
This is a Darden case study.
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Wei Li,
Jose Joaquin mat
Source: Darden School of Business
15 pages.
Publication Date: Aug 27, 2002. Prod #: UV0921-PDF-ENG
Chile: A Changed Jungle for the Latin American Tiger (shortened) HBR case solution

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