ABSTRACT
About three decades ago the Chilean economy began a process of deep economic reform. In the 1960s and early 1970s Chile had a closed economy with heavy state intervention. Import tariffs were on average 105 per cent with a high variance - ranging from 0 per cent on some products to 1000 per cent on others. Copper represented more than 80 per cent of total exports. Price distortions were enormous with absolutely no link between domestic relative prices and international prices.1
