Hence, the central bank must have an “across the cycle” view rather than a short-term one. BIS Review 39/2008  3  Our country is still going through a transition phase typical of post-crisis periods. And these transition stages – where key macroeconomic variables converge to their long-term values – take time and raise enormous challenges.
The Chilean case shows that it takes time to become a normal country. Unlike the cases of Brazil, Mexico or Southeast Asia, the abandonment of the convertibility regime included simultaneously an institutional breakdown, a huge devaluation, the destruction of the financial system and the default on the public debt.