In the early 1990s, in the context of the massive inflow of foreign capital, the Chilean government has restricted the flow of capital into the country to achieve a competitive and stable exchange rate and control inflation. By the end of the 1990s, with the onset of the financial crisis in emerging market economies, investors began pulling their capital out of Chile and other emerging markets indiscriminately. This sudden reversal of capital flows threatened to set fire to the balance of payments crisis in Chile. The government had to decide what to do. This case provides an update to the B events that unfolded in the case ("Chile: Changed jungle Latin American Tiger ()" [UV0863]) and reduce ("Chile: Changed jungle Latin American Tiger (Abridged)" [UV0921]).
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by Wei Li, Jose Joaquin Matte Source: Darden School of Business 11 pages. Publication Date: September 6, 2002. Prod. #: UV0920-PDF-ENG
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