The paper analyzes empirically the process of price dollarization in Peru since 1980. This process is defmed like indexation by the exchange rate. A review of the bibliographic material relative to dollarization is previously done. Wealth dollarization is preliminary studied too. The results...

This paper shows that there is an important dispersion in relative prices in the Peruvian economy instead of deflation, and we present an explanatory model about that dynamics. One of the most important implications is that the exchange rate has a crucial importance in the explanation of...