The short-term economic results of Minister of Economics Pedro Vuskovic's expansive monetary policy were unambiguously favorable: 12% industrial growth and an 8.6% increase in GDP, accompanied by major declines in Chile's long-endemic chronic inflation (down from 34.9% to 22.1%) and unemployment (down to 3.8%).
Initially, the governing coalition expected the unearned wage increases and the consequent increase in government spending to be corrected once the 'structural changes' like nationalisation and agrarian reforms were completed.