We study a w-dense subset of the translation invariant states on an i
nfinite tensor product algebra x Z A, where A is a matrix algebra. The
se ''finitely correlated states'' are explicitly constructed in terms
of a finite dimensional auxiliary algebra B and a completely positive
map E: A x B --> B. We show that such a state omega is pure if and onl
y if it is extremal periodic and its entropy density vanishes. In this
case the auxiliary objects B and E are uniquely determined by omega,
and can be expressed in terms of an isometry between suitable tensor p
roduct Hilbert spaces. (C) 1994 Academic Press, Inc.