Following the China-Chile high-level forum, on the afternoon of December 13th, Prof. Alejandro Puente of the University of St. Thomas, Chile, started with the rules that Chile's fiscal policy should follow, and told about the macroeconomic policies in small and open economies.The lecture was presided over by Huang Lei, vice professor of MBA of Guangdong University of Foreign Studies..

Professor Alejandro Puente pointed out that fiscal policy needed to comply with certain rules, with the aim of ensuring structural balance of the economy.This is like in a family, where only the income and spending maintain a balanced state, quality of life can be guaranteed.These rules contain three aspects: 1) the measurement index of structural balance, 2)establishing the goal of a structural surplus, 3)methodological guidance for each specific index.

He stressed that the country of Chile was more special, and the price volatility of copper could directly affect the country's economic balance. In the formula of calculating the structural balance, we can see the status of copper.

In addition, he used the chart to analyze the results that followed the rules and draw a series of revelations.For example, fiscal policy should have certain indicators, and they should be easy to understand for government workers and the public.Of course, these fiscal policy rules also have certain scope of application, and they should be flexibly used, depending on the specific national conditions.

In the interactive session, he and the MBA teachers and students discussed the differences of national conditions and specific fiscal policies between China and Chile as well as the game between inflation and unemployment.