Chile can mitigate the effect of the global crisis

Recent research by Jose De Gregorio, the governor of the Central Bank of Chile, maintains that although Chile can naturally not escape the effects of the global crisis, it is in a good position to mitigate them.

The research noted that the Chilean economy is healthy, has a solid financial system, and a strong fiscal and foreign reserve position. The floating exchange rate allows for an easy adjustment to reduced external demand and, as the country has no exchange rate straitjacket, adjustments

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