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... currency at a single exchange rate. Rising inflation and unemployment rates caused the Chicago Boys great concern, though, and they looked for other ways to stabilize the economy. They approached Pinochet about a complete restructuring of the relationship between the state and the marketplace. As Collier and Sater point out in their book, A History of Chile, “They wanted to reverse the entire state-interventionist trend that had developed in Chile since the 1920s, which tried blamed (rightly or wrongly) for holding back economic growth. This could best be secured, they held, by opening up the economy and by fostering the country’s ‘comparative advantage’ ...

... where it can completely open up its marketplace because there is still fragility in the South American economy. On the other hand, Argentina needs to take a more authoritarian stance on its economic regulation. It should use the Chilean economic policy as a model for structural reform.















Works Cited
Bethell, L. (1993) Argentina Since Independence. Cambridge: Cambridge UP.
Caistor, Nick (1996). Argentina: a guide to the People, Politics, and Culture.
London: Latin American Bureau.
Caistor, N. (1998). Chile: a Guide to the People, Politics, and Culture. London:
Latin American Bureau.
Collier, S. and William Sater. (1996). A History of Chile 1808-1994. Cambridge:
Cambridge UP.
...

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