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  •  Friedman's influence in Chile (2+ / 0-)
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    fladem, LondonYank

    is indirect.  There had been a time, especially in the late 1970s, when folks thought he had played a direct role in bringing Pinochet to power and designing the regime's economic program.  The economic shock therapy implemented in 1975 followed Friedmanite principles, and the authors of the shock therapy had almost all studied at the University of Chicago's school of economics.

    Closer research done in the 1980s, however, demonstrated that Friedman had almost nothing to do with the Chileans while they were students in Chicago.  They may have met him socially, but the bulk of their coursework had been done with Harschbarger, who also served as their adviser.  Through Harschbarger the Chileans learned Friedman's monetarism and von Hayek's version of Austrian school economics, and they brought back that economic model with them to Chile.

    As the economic crisis of the Allende administration deepened in late 1972 and early 1973, the Chicago-trained economists prepared a White Paper which they presented to coup plotters in the Navy.  That White Paper was eventually implemented in 1975.

    Friedman's visit to Chile came a bit later, in 1976 if I recall correctly.  The Chicago Boys were thrilled that he visited, and especially that he made public statements approving of how they were implementing his theory.

    When I was adjuncting at a Chilean university, one of my colleagues was an econ professor who had studied at Chicago in the 1950s.  He wasn't a Chicago Boy, but he sure had some interesting stories to tell...

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