1 INCIDENCE OF CHILEAN LAW IN INFLATION CONTROL 1 José Luis Guerrero-Becar 2 Pontificia Universidad Católica de Valparaíso-Chile Abstract The Chilean Constitution of 1980 contains several regulations that due to their content together make up the so called “economical constitution”. In addition to giving a definition of the role of economical agents, particularly the State and private citizens, the Constitution, systematically, though not organically, designs the grounds and means of control for a stable monetary economy. As of 1990, when the Constitution fully came into force, in comparison to preceding times, Chile has shown low and regular inflation levels. This phenomenon, to a great extent, is due to the incidence of Law. Keywords: Inflation – Central Bank – Monetarism – Constitution. I. MONETARISM AND ITS INTRODUCTION INTO CHILE During the period in which the Political Constitution of the Republic of Chile 3 of 1925 was in force, in Chile, as in other countries, the role of the State in the economy was discussed from an ideological and political standpoint in the global context of the coexistence of two models, both of which have pretentions of hegemony: the market model and the centralised planning model. Under the Constitution of 1925, and particularly from 1932 onwards, it is possible to identify different political-economic conceptions or visions of the role of the State in the economy: A role of assistance in the brief existence of the so-called socialist republic 4 ; a role of development and enterprise in 1 The original this article it’s published in spanish in Revista de Derecho de la Pontificia Universidad Católica de Valparaíso, Vol. XXXV, Ediciones Universitarias de Valparaíso, 2010, pp. 325-360. Only some statistical data and references (Villalta Puig, 2013) have been updated. 2 Doctor in Law, Univesitat of Valencia, Spain; Professor of Economic Law at the Faculty of Law of the Pontificia Universidad Católica de Valparaíso-Chile. Address: Facultad de Derecho, Pontificia Universidad Católica de Valparaíso, Chile. E-mail: jose.guerrero@pucv.cl 3 Herein the abbreviation P.C. refers to the Political Constitution of the Republic of Chile of 1980. When referring to the constitution of 1925, this year will be added. 4 The economic programme of the so-called Socialist Republic of 1932 (4 th June to 13 th September 1932) was presented by the Minister of Finance, Alfredo Lagarrigue, who launched an economic policy called the “40 measures”, also known as the “Lagarrigue Plan”, the aims of which were to “feed the people, clothe the people, house the people; understanding the people as all citizens without distinction of class or political