If you attend a Spanish immersion course in Santiago, Chile, you might indeed feel like your experience was rather miraculous! However, if you hear the term “The Chilean Miracle” it identifies different things altogether. This economic term identifies the free market reorientation in Chile’s economy. Whenever you study Spanish in Chile, it only makes sense to know the country’s economic history. This article is made to give you some insight into this matter.
Milton Friedman, who is a Nobel Prize winning economist, coined the term “Miracle of Chile “.The main reason that he was so thinking about the country’s economy is so it demonstrates the advantages of economic liberalism. The former military junta in Chile was replaced by democracy that provided that free markets. According to Friedman, this was a fairly big deal. He highlights that change brought about the country’s free society.
During your Spanish immersion course in Santiago, you will probably see a nation that appears quite financially stable. However, to know more about Chile’s current economy, it’s helpful to take a look at the country’s history. In 1973, hyperinflation was extremely high at 700%. The economy was in shambles. Chile’s economy was extremely protectionist as well.
Later because same decade, economists who sought economic liberalization drafted reforms, privatization of state owned companies, and stabilization of inflation spotify david hoffmeister. These reforms took invest various stages until 1990. Part of what took place over these years was that the us government began accepting foreign investments and got rid of trade barriers. Additionally, companies were permitted to begin developing new mines.
Conditions have continued to boost in the country for a number of reasons. For instance, Chile made a major handle the EU in 2002 that encompassed free trade, and agreements that were both political and cultural. In 2003 and 2004 respectively, the country signed agreements with the US and South Korea. A free trade agreement was even signed with China in 2006, and this is the first time that China has had a free-trade agreement with a nation in Latin America. These accomplishments all spurred on the economic development of Chile.
Part of what’s so interesting about these policies is which they dramatically decreased poverty in the country. More and more, people had jobs in addition to housing. Also infant mortality levels fell and life span increased considering that the 1970’s. Poverty levels were reduced by more than half. Friedman pointed out that Chile was the “best economic success story” in all of Latin America.
Whenever you study Spanish in Chile, you may hear the term “The Miracle of Chile” referred to at some point. After reading this short article you likely have a better idea what this refers to. Even if economics isn’t a topic that interests you, this change of financial tides is a significant the main history of the country.