The aim of this document is to establish the relationship between fiscal policy and the level of economic activity. On the theoretical ground, this is done using a model that links fiscal policy with economic activity, mixing the contractive and/or expansionary effects of a fiscal expansion,...

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Unlike what happenned in most Latin American economies after the Mexican crisis, the Peruvian trade deficit kept on growing during 1995, in spite of the application of restrictive fiscal and monetary policies. In this paper, a model with free capital mobility, flexible exchange rates and a...

Two dynamic models are developed in this essay. In both models the rate of inflation, the exchange rate variations and the rate of output growth are determined. They are different only in the treatment of exchange rate expectations. The first one includes adaptive expectations and the second one...

The main goal of this paper is to describe the characteristics of business cycle in Peru during 1950-1996, and to show the importance of external shocks for these economic fluctuations. The pattern of economic fluctuations in Peru, in particular the pattern of recessions, seems to be independent...

The Peruvian economy has had an extraordinary performance in the last 10 years. The 2012 per capita GDP is 66 percent over 2002 and more than double its 1992 level. In a long term perspective, the cumulative growth of GDP per capita recorded in the last 10 years has been the strongest since...