Chile’s Road to Development
Chile’s finance minister, Felipe Larrain, has described the difficulties associated with trying to weaken the country’s currency after recent trade deficits. In a speech to economic forum, the Americas Society, Larrain said that developed countries and China engage in ‘currency wars’ that keep their own exchange rate artificially weak.
Government spending in Chile has now been reduced and growth is now more than 5%. The country expects per capita income of $22,000 by 2018, the level at which it will be classed as developed.
Felipe Larrain’s full speech to the Americas Society is available here.