000			02322cam a22003017 4500
001			w1702
003			NBER
005			20211020115149.0
006			m o d
007			cr cnu||||||||
008			210910s1985 mau fo 000 0 eng d
100	1		_aEdwards, Sebastian.
245	1	4	_aThe Behavior of Interest Rates and Real Exchange Rates During a Liberalization Episode: _bThe Case of Chile 1973-83 / _cSebastian Edwards.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c1985.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w1702
500			_aSeptember 1985.
520	3		_aThis paper analyzes the behavior of some key variables during the recent economic liberalization reform attempted in Chile. The paper concentrates on the behavior of the real exchange rate and nominal and real interest rates during the period 1977-83. It is argued that as a consequence of the liberalization of the capital account in Chile in 1979-81, dramatic inflows of financial capital resulted. These capital inflows generated an important increase in expenditure, and a lower relative price of tradables to nontradables or real appreciation. Moreover, it is argued that it is the liberalization of the capital account, and not the adoption of a preannounced rate of devaluation, that generated the dramatic real appreciation of the Chilean currency between 1979 and 1981 . A model to analyze interest rate behavior in a semi-open economy is also presented and applied to the case of Chile. The results obtained suggest that during this period interest rates responded both to open-economy and closed-economy factors. Among the former the increase in the expected rate of devaluation was particularly important.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w1702.
856	4	0	_uhttps://www.nber.org/papers/w1702
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w1702
942			_2ddc _cW-PAPER
999			_c346855 _d305417