Abstract
The extraordinary increase in raw materials prices in recent years has been of considerable benefit for Latin America. This increase constitutes both an opportunity and a risk for the economies on this continent, and the way in which the authorities handle this process is extremely important. Many economists have observed that the source of this inflation process in the prices of these products lies in the fact that they are a finite resource, thus confirming the Malthusian Prophecy on economic development. For others, it is just a transitory phenomenon, where mankind’s capacity for innovation will lead to a stabilisation of prices on the long term. Depending on how the price increase is perceived, there are different opinions on how authorities should react in order to make the most of this opportunity. In the case of Latin America, the case of Chile is of particular interest, due to the significance of copper for its economy, and active management by the authorities in this country.
