Inflation Targeting in Peru: The Reasons for the Success

Oscar Dancourt ()

No 2014-386, Documentos de Trabajo / Working Papers from Departamento de Economía - Pontificia Universidad Católica del Perú

Abstract: The Peruvian central bank took two major decisions in the early 2000s: implementing an inflation target system and accumulating sufficient foreign-exchange reserves. These two decisions have allowed the central bank to preserve macroeconomic stability in favorable or unfavorable international environments. The use and impact of the main monetary policy instruments over the period 2002-2013 is discussed; namely, the short term interest rate set by the central bank or reference interest rate, the reserve requirement ratio in local and foreign currencies and, finally, sterilized intervention in the foreign exchange market. The process of bank credit (de)dollarization is also reviewed. JEL Classification-JEL: E520, E580

Keywords: Política monetaria; tasa de interés; regla de Taylor; intervención esterilizada (search for similar items in EconPapers)
Pages: 55 pages
Date: 2014
New Economics Papers: this item is included in nep-hme
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published

Downloads: (external link)
http://files.pucp.edu.pe/departamento/economia/DDD386.pdf (application/pdf)

Related works:
Journal Article: Inflation Targeting in Peru: The Reasons for the Success (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pcp:pucwps:wp00386

Access Statistics for this paper

More papers in Documentos de Trabajo / Working Papers from Departamento de Economía - Pontificia Universidad Católica del Perú Av. Universitaria 1801, San Miguel, Lima, Perú. Contact information at EDIRC.
Bibliographic data for series maintained by ().