Chile Counter-Cyclical Macro (Ffrench-Davis)

The Structural Fiscal Balance Policy In Chile: Toward a Counter-Cyclical Macroeconomics, by Ricardo Ffrench-Davis, was published in Journal of Globalization, Berkeley (n.1, Jan/2010). The paper concludes that “The Chilean fiscal policy has evolved in the last two decades combining discipline, transparency and macroeconomic management…. Progress in fiscal policy must be matched by enhanced counter-cyclical capacity in the management of aggregate demand and the exchange rate, which in recent years have become quite unstable in response to pro-cyclical capital flows.” http://migre.me/1315P (see text attached)