Abstract This study describes and analyses the design, implementation and results of the macroeconomic policies pursued by the Central Bank of Chile during the first half of the 1990s. An introductory section is followed by an explanation of the significance of macroeconomic equilibria from the standpoint of the Central Bank of Chile. The following section describes the objectives of the Central Bank and how it has interpreted the achievement of internal and external balances. The fourth section provides an overview of the institutional, structural and cyclical conditions which set the Chilean experience apart from those of other countries. An examination of the basic tenets underlying the design and implementation of macroeconomic policies by the Central Bank in the fifth section is followed, in the sixth, by a description and explanation of the core elements of the monetary, foreign exchange, international reserves and capital-account liberalization policies which were implemented during the period in question. The seventh and final section looks at the chief results of these policies and provides a synopsis of the study's main findings