This paper presents evidence on the effect of credit supply shocks on exports. Capital flow reversals in Peru during the 2008 financial crisis induced a decline in the supply of credit by domestic banks with high share of foreign-currency denominated liabilities. We use this variation to...

Historical data and model simulations support the following conclusion. Inflation is low during stock market booms, so that an interest rate rule that is too narrowly focused on inflation destabilizes asset markets and the broader economy. Adjustments to the interest rate rule can remove this...

This article explains the main features of the sterilized intervention in the foreign exchange market and the use of non-conventional policy instruments as applied by the Central Reserve Bank of Peru in order to avoid credit booms or busts in a context of a partially dollarized financial system....

Developing countries have experienced an outstanding outflow of skilled workers (brain- drain) over the last several decades. Additionally, migrants tend to be tied to their country of birth, since they send a large amount of remittances to their relatives. Furthermore, migration is not...

This paper documents the construction of a composite leading indicator for the Peruvian economy based on the business tendency surveys (BTS) conducted by the Banco Central de Reserva del Perú (BCRP). We first classify potential composite leading indicators into "semantic" and "sophisti-cated"...

Varios autores han enfocado sus investigaciones en analizar hasta qué punto la política monetaria sería importante para evitar distorsiones mayores en la distribución del ingreso. La evidencia empírica indica que una inflación baja y controlada resulta progresiva. Por otro lado, un choque...

This paper provides evidence on the effects of access to telecommunications technologies on agricultural profitability and human capital investment decisions among highly isolated villages in rural Peru. I exploit a quasi-natural experiment, in which the Peruvian government through the Fund for...

Recent crises have seen large spikes in asset price risk without dramatic shifts in fundamentals. We propose an explanation for these risk panics, based on selfful filling shifts in beliefs about risk, that are driven by a negative link between the current asset price and risk about the future...

This paper analyzes how default externalities lead to an excessive incidence of systemic private debt crises. An individual defaulting borrower does not internalize that her default leads to a depreciation in the exchange rate because international lenders will sell any seizable assets and flee...

El presente estudio contrasta la hipótesis de una relación no lineal entre la inflación y el crecimiento de la actividad económica del Perú con datos que cubren el periodo enero 1993 - junio 2012. Se usa una familia de modelos dicotómicos que enfatizan la relación entre las fases de...