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Pre-crisis Conditions and Government Policy Responses: Chile and Mexico during the Great Recession

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  • Bruno Martorano

Abstract

Chile and Mexico reacted to the crisis by implementing several policy responses, they achieved different outcomes. In particular, the Chilean economy recovered faster than the Mexican one. However, the main differences are related to social outcomes. On one hand, the Gini coefficient decreased in both countries. On the other hand, both overall and child poverty dropped in Chile while they rose sharply in Mexico. , Chile introduced a stimulus package twice as large the Mexican one. When the financial crisis arrived in late 2008 - Chile and Mexico started from different positions, they generated a different public effort, which in turn led to different economic and social results.

Suggested Citation

  • Bruno Martorano, 2014. "Pre-crisis Conditions and Government Policy Responses: Chile and Mexico during the Great Recession," Papers inwopa729, Innocenti Working Papers.
    • Handle: RePEc:ucf:inwopa:inwopa729
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    References listed on IDEAS

    as
    1. Eduardo Fernández‐Arias & Peter Montiel, 2011. "The Great Recession, “Rainy Day” Funds, And Countercyclical Fiscal Policy In Latin America," Contemporary Economic Policy, Western Economic Association International, vol. 29(3), pages 304-322, July.
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    13. Jonathan Bradshaw & Yekaterina Chzhen & Gill Main & Bruno Martorano & Leonardo Menchini & Chris De Neubourg, 2012. "Relative Income Poverty among Children in Rich Countries," Papers inwopa655, Innocenti Working Papers.
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    Cited by:

    1. Habiyaremye, Alexis & Jacobs, Peter & Molewa, Olebogeng & Lekomanyane, Pelontle, 2021. "Macroeconomic stimulus packages and income inequality in developing countries: Lessons from the 2007-9 Great Recession for the Covid-19 crisis in South Africa," MERIT Working Papers 2021-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Guillermo Cruces & Gary S. Fields & David Jaume & Mariana Viollaz, 2015. "The growth-employment-poverty nexus in Latin America in the 2000s: Mexico country study," WIDER Working Paper Series 079, World Institute for Development Economic Research (UNU-WIDER).
    3. Vladimir Hlasny, 2019. "Redistributive Impacts of Fiscal Policies in Mexico: Corrections for Top Income Measurement Problems," LIS Working papers 765, LIS Cross-National Data Center in Luxembourg.
    4. Patricia Justino & Bruno Martorano, 2016. "Redistribution, inequality and political participation: Evidence from Mexico during the 2008 financial crisis," WIDER Working Paper Series 140, World Institute for Development Economic Research (UNU-WIDER).

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