From 1996 through 2008, Schmidt-Hebbel was the first Research Manager at the Central Bank of Chile where he led the Bank's research program and participated in the design and implementation of the monetary policy regime based on inflation targeting and a flexible exchange-rate system, contributing to Chile's macroeconomic stability.

He led the OECD's global and country studies on economic policy, stabilization, structural reforms, and growth.

His leadership included advice on the policy response of member countries to the Global Financial Crisis and presentation of the OECD's flagship reports "Economic Outlook" and "Going for Growth".

[8] Schmidt-Hebbel is a member of the boards and advisory councils of the Banco de Crédito e Inversiones, The Nature Conservancy, Fundación Chilena del Pacífico, Reforestemos and Make-a-Wish.

His main research areas comprise macroeconomic policies, saving, pension systems, growth, and development.