In fact, when Milton Friedman—one of the principal architects of the so-called Chicago School of economics—traveled to Chile in 1975, it was still not clear whether Pinochet would fully embrace the Chicago School’s economic program. It was only after Friedman met personally with the dictator that Pinochet was persuaded to fight inflation with “shock treatment”—that is, steep budget cuts that would cause high unemployment but, Friedman promised, would also put the country on a more secure economic path.
Do you have examples of previous failed shock therapy attempts at economy?
General Pinochet’s rule in Chile is a good example: