and Eduardo Frei Ruiz-Tagle (1994–1999) avoided radical change in favour of a “change in continuity”. To raise the lower income groups the share of government social spending was raised and a tax reform increased fiscal income. In 1990 the labor code was reformed with the aim to legitimate unions in order to balance the bargaining powers of employers and employees. Also in 1990 a tripartite agreement between government, unions and employers provided for an increase in the real minimum wage of 28% until 1993. In the first half of the 1990s a significant success on poverty reduction and a bit more equitable income distribution was achieved. Capital controls such as a reserve requirement for foreign loans and a tax on foreign currency loans helped to prevent another financial crisis when many southern American countries suffered from the impact of the Tequila crisis. Nevertheless, the capital controls were not adapted to the disproportionate real appreciation of the peso and excessive capital inflows in 1996–1997. Thus Chile was affected by the 1997 Asian financial crisis and witnessed a financial and economic crisis, albeit a relatively short one. See also Economy of Chile Chilean nationalization of copper The Shock Doctrine Notes References Bibliography Otero, Luis (2006). La huella del fuego: Historia de los bosques nativos. Poblamiento y cambios en el paisaje del sur de Chile. Pehuén Editores. . Salazar, Gabriel (1985). Labradores, Peones y Proletarios (3rd ed.). LOM Ediciones. . Salazar, Gabriel; Pinto, Julio (2002). Historia contemporánea de Chile III. La economía: mercados empresarios y trabajadores. LOM Ediciones. . Villalobos, Sergio; Silva, Osvaldo; Silva, Fernando; Estelle, Patricio (1974). Historia De Chile (14th ed.). Editorial Universitaria. . External links Economía y democracia. Los casos de Chile y México – by J.L. Saez Lozano, CEPAL Global Trade Watch paper on recent Chilean economic policy history Economy of Chile