Conventional and alternative versions of the augmented Phillips curve are tested for Chile for the period 1974–1979. All regressors are significant. The alternative formulation and rationally formed expectations provide the best fit, with the minimum wage indexation and conventional curve...

Several Phillips curve models are presented and estimated with Chilean annual data for 1963–1982. Because of unreliable unemployment statistics, the real wage level is used to represent labour market disequilibrium. The Cortázar‐Marshall inflation index, alternative to the official one, and...

Some structuralists argue that devaluations are contractionary, and that exports and imports are inelastic to exchange rate movements. A simultaneous model of exports, imports, capital flows and output is used to show that in Peru only the first proposition is correct. Consequently, external...