This article gives a broad overview of the political economy of Chile since the military coup of 11 September 1973. Its main concern is with analysing the Chicago economic model being imposed in Chile, and how this become the dominant strategy after the coup. It argues that there is an intimate connection between the Chicago economic free market model being implemented in Chile and the repressive political dictatorship. The first part of the article looks at the relationship between the Chicago‐trained economists and the making of the coup. The second part analyses some of the key policy decisions taken and the relationship between economic and political changes. The third part explains and analyses the model itself, and exposes some of its main contradictions.