"This book examines the main causes of financial instability and highlights that, with the exception of wars and pandemics, the financial system is the source of the crisis, not just a means of spreading it, as most mainstream experts believe. The innovative parts of this book provide academics...

The macroeconomic environment has improved, reflecting the authorities' efforts, supported by an IMF arrangement. Previously, years of high fiscal deficits, public enterprise borrowing, and financial sector bailouts led to rapid government debt accumulation, crowded out private credit, increased...

Peru's financial system has developed and become more resilient since the previous FSAP in 2011, but some challenges remain. Peru's main vulnerabilities are external, especially related to growth in trading partners (due to reliance on commodity exports), and exchange rate depreciation (due to...