Today, several less developed countries are implementing liberal economic policies, such as privatization of state-own services, reduction and elimination of tariffs and trade barriers, creation of well-developed capital markets, and openness of the economy to foreign capital, among others. Their main purpose is to achieve rapid economic development, just as Mexico, Chile, and Argentina successfully have done recently. One of these countries is Ecuador, . where the new conservative government is implementing these policies. This study is motivated by the author's desire to determine how financial and monetary policy in Ecuador influence its economic development. In order to understand the effects of these policies, it is important to analyze what theory predicts, past experiences and the structure of the Ecuadorean economy.



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