MACROECONOMIC ADJUSTMENT IN DEVELOPING COUNTRIES: A POLICY PERSPECTIVE

Abstract
This article assesses the design of stabilization and liberalization programs in the Abstract Southern Cone countries of Argentina, Chile, and Uruguay. With the exception of Chile, the reforms were not as widespread as some believed. Little trade liberalization took place in Argentina and Uruguay, although some of the antiexport bias was reduced by eliminating taxes on traditional exports. In all three countries, labor markets remained fairly highly regulated, though it was easier to dismiss labor. In general, liberalization was gradual: even Chile's trade liberalization spanned five years.

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