In the first year of Allende's term, the short-term economic results of Minister of the Economy Pedro Vuskovic's expansive monetary policy were unambiguously favorable: 12% industrial growth and an 8.6% increase in GDP, accompanied by major declines in inflation (down from 34.9% to 22.1%) and unemployment (down to 3.8%). However, these results were not sustained, and in 1972, the Chilean escudo had runaway inflation of 140%. The average Real GDP contracted between 1971 and 1973 at an annual...