Central Bank of Chile

The Central Bank of Chile (Spanish: Banco Central de Chile) is the central bank of Chile. It was originally created in 1925 and is incorporated into the current Chilean Constitution as an autonomous institution of constitutional rank. Its monetary policy is currently guided by an inflation targeting regime.

Central Bank of Chile
Official logo of the Central Bank of Chile
Official logo of the Central Bank of Chile
Front view of the Central Bank of Chile building
Front view of the Central Bank of Chile building
HeadquartersAgustinas 1180, Santiago, Chile
EstablishedAugust 22, 1925
PresidentMario Marcel Cullell
Central bank ofChile
CurrencyChilean peso
CLP (ISO 4217)
Reserves38.7 billion USD (January 2018) [1]
Interest rate target2.50%[2]
Websitewww.bcentral.cl

History

Starting in the mid-19th century, private banks started to thrive in Chile, spurring growing concerns over the control of payment methods and persistent inflation. To this end, the government hired a mission led by economics professor Edwin Kemmerer of Princeton University and based the nascent central bank’s structure in one of the mission proposals. In August 1925, the Central Bank of Chile (CBoC) was created through Decree Law 486, which also established the bank's monopoly for issuing bank notes under a gold standard regime. A degree of independence to avoid capture by the public or private sectors was implicit in its ten-member board structure.[3][4]

Inflation, however, did not recede. Moreover, it was further heightened by a weak institutional framework. Inflation would only be controlled after the introduction of autonomy of constitutional rank in 1989.[3]

Institutional framework

JoseDeGregorio
Central Bank President José de Gregorio Rebeco presenting the new $5,000 bill.

The CBoC is granted autonomous status by Chile’s National Constitution, in order to secure independence from national authorities, providing credibility and stability beyond the political cycle.[4][5] According to the Basic Constitutional Act of the Central Bank of Chile (Law 18,840), its main objectives are to safeguard “the stability of the currency and the normal functioning of internal and external payments".[6] Therefore, the CBoC needs to control inflation to foster a stable currency, while the payment system’s normality requires functional financial intermediation, the provision of payment services and adequate risk allocation. To meet these objectives, the CBoC is enabled to use monetary and foreign exchange policy instruments, along with some discretion on financial and capital markets regulation.[5]

The CBoC is governed by a Board composed of five members appointed by the president, but ratified by the senate. Each term is ten years long and members are chosen in a staggered way every two years. The president appoints the Governor of the Board (and the bank) from existing members, for the minimum between the chosen member’s remaining term and five years. At least three members need to be present for the board to operate and measures are adopted with the support of the majority of present members. The Minister of Finance also participates in board meetings with the right to speak and, unless there is full consensus among board members, can suspend board resolutions for 15 days.[4][5]

Policies

The CBoC is Chile's monetary authority and its monetary policy is guided by an inflation targeting regime, which is fully in place since 1999. Specifically, the CBoC pursues an inflation target of 3%, with a tolerance range of 1% (above or below), with the objective of anchoring market expectations in a two-year horizon.[5] Decisions on the monetary policy rate (MPR), the reference interest rate for the economy, usually take place on a monthly basis in the monetary policy meetings, although extraordinary meetings can be called. If inflation expectations are diverging from the 3% target or if there are events since the previous meeting with an anticipated effect in the price level, the CBoC might change the MPR. The monetary policy is carried out through the daily interbank interest rate.[5] Inflation has followed a relatively stable trajectory since the inception of the targeting regime, remaining under 10% ever since; yearly inflation only surpassed the tolerability threshold of 4% in 2007 and 2008, with respective readings of 4.4% and 8.7% in historical terms.[7]

The foreign exchange policy is led by a floating exchange rate, although the bank reserves the right to intervene in the foreign exchange markets. Although unusual, the CBoC has used announced interventions in four occasions since 1999, when the economy transitioned to a floating exchange rate scheme, all of which were sterilized. Twice, in August 2001 and in October 2002, the central bank intervened to deter a depreciation,[5] while the remaining two events, announced in April 2008 and January 2011, where aimed at strengthening the international reserves position of the bank through daily and pre-announced dollar purchases.[8][9]

List of Governors

Picture Name Entered Office Exited Office Notes
IsmaelTocornalTocornal Ismael Tocornal Tocornal 1926 † October 6, 1929
Emiliano Figueroa Larraín 1929 1931
Francisco Garcés Gana 1931 1932
ArmandoJaramillo Armando Jaramillo Valderrama 1932 1933
Guillermo Subercaseaux Pérez 1933 1939
Marcial Mora Miranda 1939 1940
EOyarzunM Enrique Oyarzún Mondaca 1940 1946
Manuel Trucco Franzani 1946 1951
Arturo Maschke Tornero 1953 1959
Eduardo Figueroa Geisse 1959 1961
Luis Mackenna Shiell 1962 1964
Sergio Molina Silva Sergio Molina Silva 1964 1967
Carlosmassad Carlos Massad Abud 1967 1970
Alfonso Inostroza Cuevas 1970 1973
Carlos Matus Romo June 2, 1973 September 10, 1973
Eduardo Cano Quijada 1973 1975
Pablo Baraona Urzúa 1975 1976
Alvaro Bardón Muñoz 1977 1981
Sergio de la Cuadra Sergio de la Cuadra Fabres 1981 1982
Miguel Kast Rist April 23, 1982 September 2, 1982
Carlos Cáceres 2 Carlos Cáceres Contreras September 3, 1982 1983
Hernán Felipe Errázuriz Correa 1983 1984
Francisco Ibáñez Barceló 1984 1985
Enrique Seguel 1990 Enrique Seguel Morel 1985 April 3, 1989
Manuel Concha Martínez April 3, 1989 December 9, 1989
Andrés Bianchi 1990 Andrés Bianchi Larre December 10, 1989 December 2, 1991
Roberto Zahler 1990 Roberto Zahler Mayanz December 3, 1991 June 30, 1996
Carlosmassad Carlos Massad Abud July 1, 1996 2003
Vittoriocorbo Vittorio Corbo Lioi 2003 2007
Josedegrego José de Gregorio Rebeco 2007 2011
Rodrigo Vergara Montes (27189940723) Rodrigo Vergara 2011 2016
Mario Marcel Cullell (27523281320) Mario Marcel 2016 present

See also

References

  1. ^ "Reservas del Banco Central".
  2. ^ "Base de Datos Estadísticos".
  3. ^ a b Corbo, Vittorio, and Leonardo Hernández. "Ochenta años de historia del Banco Central de Chile." Working Paper No. 345, Central Bank of Chile (2005).
  4. ^ a b c Central Bank of Chile website, About, Functions.
  5. ^ a b c d e f Central Bank of Chile: Monetary Policy in an Inflation Targeting Framework. Central Bank of Chile, January 2007.
  6. ^ Law 18,840, Basic Constitutional Act of the Central Bank of Chile, Title I, Section 3.
  7. ^ Central Bank of Chile, Statistics Database, Prices, Historical Information, Headline CPI annual change.
  8. ^ Central Bank of Chile, Press Release, April 10, 2008 (in Spanish).
  9. ^ Central Bank of Chile, Press Release, January 3, 2011.

External links

Coordinates: 33°26′28″S 70°39′10″W / 33.44111°S 70.65278°W

Chicago Boys

The Chicago Boys were a group of Chilean economists prominent around the 1970s and 1980s, the majority of whom trained at the Department of Economics of the University of Chicago under Milton Friedman and Arnold Harberger, or at its affiliate in the economics department at the Pontifical Catholic University of Chile. Upon their return to Latin America they adopted positions in numerous South American governments including the Military dictatorship of Chile (1973–90). As economic advisors, many of them reached high positions within those. The Heritage Foundation credits them with transforming Chile into Latin America's best performing economy and one of the world's most business-friendly jurisdictions. However, critics point to drastic increases in unemployment that can be attributed to policies implemented on their advice to fight inflation. Some (such as Nobel laureate Amartya Sen) have argued that these policies were deliberately intended to serve the interests of American corporations at the expense of Latin American populations. Peter Kornbluh states that in the case of Chile, American attempts to destabilize the Chilean economy ceased once the Chicago Boys had gained political influence; this may have been the true underlying cause of the subsequent increase in economic growth.

Chilean peso

The peso is the currency of Chile. The current peso has circulated since 1975, with a previous version circulating between 1817 and 1960. Its symbol is defined as a letter S with either one or two vertical bars superimposed prefixing the amount, $ or ; the single-bar symbol, available in most modern text systems, is almost always used. Both of these symbols are used by many currencies, most notably the United States dollar, and may be ambiguous without clarification, such as CLP$ or US$. The ISO 4217 code for the present peso is CLP. It is officially subdivided into 100 centavos, although there are no current centavo-denominated coins. The exchange rate was around CLP$600 to 1 United States dollar at the end of 2014 and as of 1 April 2018.

Economy of Chile

Chile is ranked as a high-income economy by the World Bank, and is considered as South America's most stable and prosperous nation, leading Latin American nations in competitiveness, income per capita, globalization, economic freedom, and low perception of corruption. Although Chile has high economic inequality, as measured by the Gini index, it is close to the regional mean.In 2006, Chile became the country with the highest nominal GDP per capita in Latin America. In May 2010 Chile became the first South American country to join the OECD. Tax revenues, all together 20.2% of GDP in 2013, were the second lowest among the 34 OECD countries, and the lowest in 2010. Chile has an inequality-adjusted human development index of 0.661, compared to 0.662, 0.680 and 0.542 for neighboring Uruguay, Argentina and Brazil, respectively. In 2008, only 2.7% of the population lived on less than US $2 a day.The Global Competitiveness Report for 2009–2010 ranked Chile as being the 30th most competitive country in the world and the first in Latin America, well above Brazil (56th), Mexico (60th), and Argentina which ranks 85th; it has since fallen out of the top 30. The ease of doing business index, created by the World Bank, listed Chile as 34th in the world as of 2014, 41st for 2015, and 48th as of 2016. The privatized national pension system (AFP) has an estimated total domestic savings rate of approximately 21% of GDP.

Ismael Tocornal

Ismael Tocornal y Tocornal, GCMG (April 5, 1850 - October 6, 1929) was a Chilean politician and diplomat, and the first Governor of the Central Bank of Chile.

He was born in Santiago, the son of Manuel Antonio Tocornal y Grez and of Mercedes Ignacia Tocornal y Velasco. He completed his studies in the Colegio San Ignacio and at the Instituto Nacional. Trucco then attended the University of Chile, where he graduated as a lawyer on June 20, 1873. Early in his life he dedicated most of his time to his Hacienda San José in Puente Alto. Ismael Tocornal married Leonor Cazotte y Alcalde, and together they had one son. After the death of his first wife, he married a second time with Josefina Matte y Pérez, but they had no children.

Tocornal joined the Radical Party of Chile and he was elected supplementary deputy for "La Victoria" (1879-1882), and reelected, this time as proprietary deputy for the same area (1882-1885). In 1891 was elected deputy for "Melipilla and La Victoria" (1891-1894) and in 1897 deputy for "Cauquenes and Constitución" (1897-1900). He was elected President of the Chamber of deputies on June 9, 1897, position he held until July 2, 1898.

President Germán Riesco appointed him Minister of Industry and Public Works, position he held from September 18, 1901 until November 18 of the same year, when he was reappointed as Minister of the Interior, until May 6, 1902. President Pedro Montt appointed him again as Minister of the Interior between September 15, 1909 and June 17, 1910, same as Presidents Ramón Barros Luco between January 23 and May 20, 1912; Juan Luis Sanfuentes between July 14 and September 11, 1917 and Arturo Alessandri between November 3, 1921 and March 22, 1922.

In 1915, Tocornal was elected a Senator for "Ñuble" (1915-1921). On June 3, 1918 was elected President of the Senate, position he held until September 8, 1919. In 1919 he was designated as Especial Ambassador to the United Kingdom and headed the delegation that returned the courtesy visit of Especial Ambassador Maurice de Bunsen. During that visit, King George V appointed him Knight Grand Cross (GCMG) of the Order of St Michael and St George.

In 1920, he was part of the tribunal of honor that decided the result of the presidential election between Arturo Alessandri and Luis Barros Borgoño. On June 26, 1922 he was once again elected as a Senator, this time for "Santiago", where he remained until 1924. At the creation of the Central Bank of Chile in 1925, Tocornal was appointed its first Governor, a position he retained until his death in Santiago in 1929, at the age of 79.

José de Gregorio

José de Gregorio Rebeco (born August 17, 1959) is a Chilean economist and—from 2007 to 2011—the Governor of the Central Bank of Chile. He was formerly Vice-Governor from December 2003, and member of the Bank's Board from June 2001. He is also a nonresident Senior Fellow at the Peterson Institute for International Economics.

De Gregorio has a degree in civil engineering and a master’s degree in engineering from the University of Chile (1984), where he received the Marcos Orrego Puelma award for the best graduate for his year. He obtained a doctorate (PhD) in Economics in 1990 at the Massachusetts Institute of Technology (MIT).

De Gregorio has published widely in international academic reviews and books on issues including stabilization policies, foreign exchange regimes and economic growth. He has served as a referee for several academic journals and is an associate editor with the journals International Tax and Public Finance and Latin American Economic Review. He is also a member of the Executive Committee of the Latin American and Caribbean Economic Association (Lacea) and was co-director of the organizing committee for the annual Lacea meeting in 1999.

From March 2000 to June 2001, de Gregorio was a “tri-minister”, acting as the minister of the combined portfolios of the Economy, Mining and Energy, as president of the National Energy Commission. During this period he also served as president on the boards of the state-owned companies, Codelco, Enap and Enami, and president of the Corfo and Cochilco boards.

De Gregorio is a full professor at the University of Chile (on leave). In 1997 and 2000 he was professor and head of post-graduate programs at the Center of Applied Economics at the University of Chile, where he has taught macroeconomics and international economics since 1994. He also served on the executive of the Latin American Doctoral Program in Economics, carried out jointly by Mexico’s ITAM, Torcuato di Tella University, Argentina, and the University of Chile.

From 1994 to 1997, de Gregorio coordinated economic policy within the Chilean Ministry of Finance.

From 1990 to 1994 de Gregorio worked as an economist in the research department of the International Monetary Fund (IMF), where he also participated in missions to Guyana, Spain and Italy. He has worked as a consultant for international organizations (IMF, World Bank, Inter-American Development Bank and United Nations) and foreign companies. He was a visiting researcher at the IMF and the World Bank, and visiting professor at the Anderson School, University of California - Los Angeles. From 1983 to 1986 he was a researcher at the Corporación de Investigaciones Económicas para Latinoamérica (Corporation for Latin American economic research), Cieplan.

De Gregorio was chosen as "The Best Central Bank President in Latin America for 2008" in a poll taken among bankers and economists by British magazine "The Banker", which belongs to the journalism conglomerate of the Financial Times.

List of alumni of the University of Chile

The following is a list of notable alumni of the University of Chile.

List of companies of Chile

Chile is a South American country occupying a long, narrow strip of land between the Andes to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far south. Chilean territory includes the Pacific islands of Juan Fernández, Salas y Gómez, Desventuradas, and Easter Island in Oceania.

Chile is today one of South America's most stable and prosperous nations. It leads Latin American nations in rankings of human development, competitiveness, income per capita, globalization, state of peace, economic freedom, and low perception of corruption. It also ranks high regionally in sustainability of the state, and democratic development. Chile is a founding member of the United Nations, the Union of South American Nations (UNASUR) and the Community of Latin American and Caribbean States (CELAC).

Manuel Trucco

Manuel Trucco Franzani (March 18, 1875 – October 25, 1954) was a Chilean politician and provisional vice president of Chile in 1931.

He was born in Cauquenes, the son of Napoleón Trucco Morano and of María Franzani Monigette. He completed his studies in his native city, and at the Instituto Nacional. Trucco then attended the Universidad de Chile, where he became a civil engineer in 1899. Between 1891 and 1902, while still a student at the university, he started to work at the Liceo de Cauquenes to complement his income, first as the secretary to the principal and then as a teacher of mathematics. After his graduation he became an engineer at the Direction of Public Works and at the State Railroads. The government granted him a scholarship to complete his graduate studies at L’Ecole des Ponts et Chaussées in París between 1902 and 1904. He married Laura Gaete Fagalde, and together they had four children: Marta, Graciela, Rebeca and Manuel.

At his return, he became a Professor of the resistance of materials at the school of architecture of the Universidad de Chile, while continuing his work at the State Railroads, where he designed several railroad bridges (such as the Claro, near Yumbel, the Perquilauquén near Quella, and the viaduct of Las Cucharas in the Santiago-Valparaíso track.) In 1911 he became Dean of Mathematics at the university, and in 1917, also became director of the schools of engineering and architecture. In 1918, Trucco resigned all his positions at the university in order to dedicate himself to his work as General Director of Railroads, a position he held until 1924.

Trucco joined the Radical Party and in 1926 became its president, but resigned shortly afterwards due to his poor health. The same year he was elected Senator for "Arauco, Malleco and Cautín" (1926-1930). After the resignation of president Carlos Ibáñez del Campo in 1931, his successor, vice-President Juan Esteban Montero named Trucco as Minister of the Interior on August 7, 1931. Very soon after, Montero accepted the presidential nomination for the upcoming elections. Since Montero was constitutionally banned from standing as a candidate while still in office, as a way out of the political impasse, and in order to qualify, he resigned his vice-presidency effective on August 20, 1931. The position was assumed by Manuel Trucco as Vice President.

The Trucco administration was only a caretaker one, charged with keeping order in the country until after the presidential elections. Nonetheless it was faced with very difficult moments such as the Sailors' mutiny in the navy, caused by the reduction of the salaries of the enlisted men (September 1–5, 1931), which was controlled only after an aerial bombing of the fleet, but which predicted difficult times ahead. He remained as Vice President until November 15, when Juan Esteban Montero resumed power after sweeping the election.

President Arturo Alessandri named him ambassador to the United States between 1932 and 1938. At his return, Trucco retired from politics, but in 1946, PresidentGabriel González Videla appointed him Governor of the Central Bank of Chile, a position he held until 1951. Manuel Trucco died in Santiago in 1954 at the age of 79.

Marcel Claude

Marcel Henri Claude Reyes (born in Santiago, Chile on 26 February 1957) is a Chilean economist, academic, and political activist. He was an independent candidate to become President of Chile in the Chilean presidential election, 2013, and has been endorsed by the Humanist Party.Previously, Claude worked at the Central Bank of Chile between 1983 and 1995, and later directed two Chilean environmental NGOs.

Mario Marcel

Mario Marcel Cullell (born October 22, 1959, Santiago de Chile) is a Chilean economist and the Governor of the Central Bank of Chile. He was named Governor in December 2016 and member of the Bank's Board from October 2015. He has been a close collaborator of the governments of the center-left Concertation of Parties for Democracy (1990-2010), and held for six years the ownership of the Budget Division, where it played a key role in the design of the structural surplus rule Marcel has a degree in Bachelor’s Degree in business administration from the University of Chile and a M. Phil. Degree in economics from the University of Cambridge, United Kingdom.

Miguel Kast

Miguel Kast Rist (December 18, 1948 - September 18, 1983) was a German-born Chilean economist of the Chicago Boys group. He was most known for his role in public policies, where he promoted a greater focus of resources toward the needy.Upon getting his Master in Economics at University of Chicago, Miguel Kast joined Odeplan (1973), the state agency that led many public policy and economic changes after 1973. At Odeplan, Miguel Kast focused most of his energies on creating the "map of extreme poverty", which would become the cornerstone of Chile's social development programs. In 1978 he became the head of Odeplan and used his position to involve young professionals in the struggle against poverty by making them join Odeplan and by sending them to the country's outer regions to get insight into the real problems of Chile.

In 1980 Miguel Kast became Labor Minister under the Military government of Augusto Pinochet and in 1982 he became Governor of the Central Bank of Chile.

This was a complicated moment in Chile's economy; the exchange rate was fixed at 39 pesos per dollar and Chile's big economic groups had liabilities with their own banks. As a Central Banker he worked to reduce the level of related loans (loans made to the owners of the banks). He also created a mechanism called the "Portfolio Sale" through which the Central Bank could buy high risk credits to commercial banks. By keeping a fixed exchange rate of 39 pesos per dollar, Miguel Kast hoped to protect local companies that had liabilities in dollars. However the central authority saw it otherwise and on June 13, 1982 decided to devalue the peso. This brought a sharp loss of international reserves and Miguel Kast decided in August 1982 to completely free exchange rate thus further devaluing the peso and bringing a new intervention from the central authority. Under this new threat of instability, Miguel Kast resigned from the Central Bank.

Only few months after his resignation, in January 1983, Miguel Kast learned he had bone cancer. He died on September 18 of the same year.

In recognition of Miguel Kast's work, the Atlas Economic Research Foundation created an award named after him to recognise the Latin American think tank which has made the most important contribution to help reduce poverty.Two of his relatives are involved in politics too: his younger brother José Antonio, and one of his children, Felipe.

Nicolás Eyzaguirre

Nicolás Eyzaguirre Guzmán (born 3 January 1953 in Santiago) is a Chilean economist, and the former Minister of Education of his country. Previously, he was Chile's Minister of Finance between 2000 and 2006. He is the son of architect Joaquín Eyzaguirre and actress Delfina Guzmán.

Eyzaguirre received his secondary education at the elite Colegio Verbo Divino private school. A music enthusiast, at the age of 15 he was admitted to the University of Chile Conservatory to study classical guitar, being lured by the Nueva canción movement. With his brother, Joaquín, he was part was of the folk group Aquelarre, playing titles such as, El cautivo de Tiltil and Valparaíso.

Eyzaguirre began his career in politics as a member of the Christian Democrat Party, and then migrated to the Christian Left Party and then to the Communist Party, where he stayed until his departure to the United States. He graduated as a Commercial Engineer with a mention in Economics at the University of Chile, and obtained his master's degree in Economics from the same university, specializing in Economic Development.

Later, he traveled to the United States to obtain a Doctorate in Macroeconomics and International Trade from the Harvard University, which he never completed. Eyzaguirre changed his view of economics during his time at Harvard. He later admitted to having been mistaken in his Communist ideology, and that adopting the principles of the free market was more sound and rational.Back in Chile, Eyzaguirre became acquainted with and befriended Ricardo Lagos, with whom he later joined the Party for Democracy, his current party affiliation.

Between 1984 and 1985, he worked as an international consultant and adviser to the International Monetary Fund. Later, between 1985 and 1990, he worked as an expert in Monetary and Financial Policy for Latin America at CEPAL. After the return of democracy, he performed senior roles at the Central Bank of Chile between 1990 and 1997, occupying the positions of Director of Research and Chief Economist.

On 11 March 2000, he took the oath as Minister of Finance in the government of Ricardo Lagos. The Lagos government's policy was to perpetuate and perfect Chile's free market economy by drawing lessons for the Asian crisis, which had left Chile with persistently high unemployment and low growth. It balanced the fiscal accounts and implemented a fiscal rule based on the structural balance, which strengthened the fiscal position and contributed to inflation reaching historical lows. The increased macroeconomic stability fostered a return to better economic performance, with growth reaching 6% by 2004. Eyzaguirre's six-year term makes him the longest-serving Minister of Finance in the history of Chile.

Under his tenure the state owned mining company, Codelco, closed copper forward trades with the chinese government. Those transactions generated losses of almost usd 5.0 bn for the chilean government. The internal revenue service of Chile (SII) questioned de operations because copper was sold at an average of usd1,16 per pound, while in the London Exchange was trading at usd 3,87.

Ranked lists of Chilean regions

This article includes several ranked indicators for Chile's regions.

Ricardo Ffrench-Davis

Ricardo Ffrench-Davis (born 27 June 1936) is a Chilean Economist. He is Professor of the Department of Economics and the Instituto de Estudios Internacionales at the University of Chile.

Together with a few other Chilean students he got the chance to study at the University of Chicago in the 1960s, where he was a remarkable student. He earned his Ph.D. in Economics from the University of Chicago in 1971. Although the students were later named Chicago Boys, Professor Ffrench –Davis was one main critic of the neo-liberal regime imposed in Chile by the Pinochet dictatorship. Two of the outstanding papers that summarize his critical arguments are "The monetarist experiment in Chile: a critical survey" published (around 1982), in French, English, German, Portuguese and Spanish; and “Economic development and equity in Chile: legacies and challenges in the return to democracy", published (around 1990) in French, English, Italian and Spanish.

From 1964 to 1970 he was Deputy Manager of the Central Bank of Chile. He was Co-founder of the think tank Center for Economic Research on Latin America (CIEPLAN) where he acted as Vice-President from 1976 to 1990.

Between 1990 and 1992 he was Director of Research and Chief Economist, of the Central Bank of Chile, when Chile designed the successful countercyclical regulation of the external accounts. From 1992 to 2004 he became Principal Regional Adviser at the United Nations Economic Commission for Latin America and the Caribbean (CEPAL/ECLAC)He was awarded the National Prize for Humanities and Social Sciences from the State of Chile in 2005.He was Chairperson of the Committee for Development Policy of the United Nations in 2007-2010; in 2004-2010 he represented Presidents Ricardo Lagos and Michelle Bachelet in the International Initiative to Fight Hunger and Poverty, launched by Brazil, Chile, France and Spain.

He has published 21 books and over 150 articles on international trade and finance, development strategies, and Latin American economies, in nine languages. Among other books, author of Reforming Latin America’s Economies after Market Fundamentalism, Palgrave Macmillan, London 2005 and New York, 2006; and Economic Reforms in Chile: from Dictatorship to Democracy, second edition, Palgrave Macmillan, London and New York, 2010 (fifth edition in Spanish in 2014).

SM-Chile

SM-Chile is a holding company for Banco de Chile. Until 1996, when its Board of Shareholders agreed to become an investment company with exclusive turn, governed by Law No. 19,396, changing its name to Bank of Parent Company Chile SA' Simultaneously, the parent company of Banco de Chile SA created a commercial bank under the name Banco de Chile and was transferred all its assets and liabilities, excluding subordinated obligation call with the Central Bank of Chile, obligation undertaken following the banking crisis of the years 1982 - 1984 and the consequent bailout carried out by the Central Bank. After this transformation, the sole shareholder of Banco de Chile was the parent company of Banco de Chile SA

From 1996 to 2008, the parent company of Banco de Chile has reduced its participation in Banco de Chile, the proceeds of redemption of shares of Series E of the capitalization of profits of the Bank, the merger of Banco de Chile, from January 2002 merger with Citibank Chile, from January 2008.

At December 2015, SM-Chile owns directly the 42,38% of Banco de Chile (12,63% directly and 29,7% though its subsidiary management company of the Subordinated Obligation SAOS SA).

The ownership of the Company is divided into four sets of actions: A, B, D and E. The Company's shares are traded on the Stock Exchange of Chile, the Chilean Electronic Stock Exchange and the Valparaíso Stock Exchange.

The parent company of Banco de Chile is monitored by the Superintendency of Banks and Financial Institutions of Chile.

Stephany Griffith-Jones

Stephany Griffith-Jones (born June 5, 1947) is an economist specialising in international finance and development, with emphasis on reform of the international financial system, specifically in relation to financial regulation, global governance and international capital flows. She is currently financial markets director at the Initiative for Policy Dialogue, based at Columbia University in New York and associate fellow at the Overseas Development Institute. Previously she was professorial fellow at the Institute of Development Studies at Sussex University. She has held the position of deputy director of International Finance at the Commonwealth Secretariat and has worked at the United Nations Department of Economic and Social Affairs and in the United Nations Economic Commission for Latin America and the Caribbean. She started her career in 1970 at the Central Bank of Chile. Before joining the Institute of Development Studies, she worked at Barclays Bank International in the UK. She has acted as senior consultant to governments in Eastern Europe and Latin America and to many international agencies, including the World Bank, the Inter-American Development Bank, the European Commission, UNICEF, UNDP and United Nations Conference on Trade and Development. She was also a member of the Warwick Commission on international financial reform. She has published over 20 books and written many scholarly and journalistic articles. Her latest book, edited jointly with José Antonio Ocampo and Joseph Stiglitz, Time for the Visible Hand, Lessons from the 2008 crisis, was published in 2010.

Unidad de Fomento

The Unidad de Fomento (UF) is a Unit of account that is used in Chile. The exchange rate between the UF and the Chilean peso is constantly adjusted for inflation so that the value of the Unidad de Fomento remains almost constant on a daily basis during low inflation.

It was created on 20 January 1967, for the use in determining principal (monetary item) and interest (constant real value non-monetary item) in international secured loans (monetary items) for development, subject to revaluation according to the variations of inflation. Afterwards it was extended to all types of bank loans (monetary items), private or special financing (monetary items), purchases (trade debtors/trade creditors being constant real value non-monetary items) or investments on installments, contracts (constant real value non-monetary items), and some special situations. Also it is used in legal standards such as the par value of stock/capitalization (constant real value non-monetary items) of companies, fines (payables being constant real value non-monetary items), etc.

It has become the preferred and predominant measure to determine the cost of Real Estate (variable items valued at Historical Cost being updated), values of housing (historical variable real value non-monetary items being updated) and any secured loan (monetary item), either private or of the Chilean government. Individual payments are made in Chilean pesos (the country's legal tender), according to the daily value of the UF.

For historical and current values of the Chilean Unidad de Fomento (UF), see government's Central Bank of Chile.

A similar currency unit for use generally in payment of taxes, fines, or customs duty is the Unidad Tributaria Mensual (UTM) (literally: monthly tax unit).

Vittorio Corbo

Vittorio Corbo Lioi (born 22 March 1943) is a former Governor of the Central Bank of Chile, who held the post since May 2003 until December 2007.Corbo studied economics at the University of Chile in 1967 and has a PhD in economics from MIT which he gained in 1971. He taught at Concordia University in Canada between 1972 and 1979. He was appointed a Professor at the Universidad de Chile (1979 - 1981) and at the Pontificia Universidad Catolica (1981 - 1984) and (1991 - present), and a Professorial Lecturer at Georgetown University in the United States (1986-1991). Mr. Corbo worked at the World Bank from 1984 to 1991 as Head of the Macroeconomic Development and Growth Division.

He is also member of the Management Council of the Fundación Chilena del Pacífico (Chilean Pacific Foundation), the International Advisory Council of the Center for Social and Economic Research (CASE) in Warsaw, Poland, and from 1999, a member of the Advisory Board of the Stanford Center for International Development. He has also served as a Vice-President of the International Economic Association (1998-2002). In recent years he has been advisor to the World Bank, the IADB and the International Monetary Fund.

He was Economic Advisor to the Santander-Chile Group (1991-2003), Director of the Santander-Chile Bank (1995-2003), Director of the Universidad de Chile (2000-2003), member of the Management Council of the Global Development Network (1993-2003) and he has been consultant to important national and international firms (1979-1984 and 1991-2003).

Corbo was also Senior Research Fellow at the Research Center for Economic Development and Policy Reform of the Stanford University in California (Summer 1999) and of the Research Department of the International Monetary Fund (Summers 2000 and 2003). He has worked in more than ten countries, lectured at seminars in more than twenty countries and at the most important universities worldwide.

He is author of nine books and over a hundred articles published in books and international periodicals specialising in economic affairs. He is a recognized authority on macroeconomics, international trade and economic development and economic tightness processes. He is also member of the editorial committee of the Journal of Development Economics and of the Journal of Applied Economics.

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