1. Our authorities would like to thank the staff for a comprehensive and useful Staff Report and Selected Issues papers, which reflect the permanent collaborative dialogue that has characterized the relationship between Chile and the Fund. This year’s report corresponds to a fully-fledged Article IV Consultation, after a streamlined version in 2007. As such, this year’s report was produced taking into account the 2007 Decision, as it explicitly incorporates an assessment of external stability and the real exchange rate and the policy options for achieving and maintaining external and domestic stability in light of the confluence of domestic and external shocks that have recently impacted the Chilean economy. Given these shocks, Chile’s rules-based policy framework has provided enough flexibility in order to respond to them, thereby mitigating their impact in order to ensure domestic and external stability.