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Perú: Lecciones de la recesión de 2008-2009
[Peru: Lessons from the recession of 2008-2009]

Author

Listed:
  • Dancourt, Óscar
  • Jiménez Sotelo, Renzo

Abstract

The hypothesis of the paper is that the macroeconomic policies implemented in Peru during the recessions of 1998-2000 and 2008-2009 were substantially different. This explains why economic performance in the second was much better than in the first. In monetary policy, both the exchange rate of the dollar as the interest rate in soles rose during the recession of 1998-2000, while the exchange rate of the dollar remained steady and the interest rate down during the recession 2008-2009. On fiscal policy, government spending was cut during the recession of 1998-2000, except during the campaign for re-reelection, while public spending increased during the recession of 2008-2009, except at the beginning of the crisis . In conclusion, in 2008-2009 for the first time Keynesian policies were applied in Peru during a recession, which for over half a century ago is systematically done in the central countries. A crucial point is that these different macroeconomic policies were possible to implement because in 2008 the central bank had accumulated enough foreign exchange reserves, while in 1998, it had not.

Suggested Citation

  • Dancourt, Óscar & Jiménez Sotelo, Renzo, 2010. "Perú: Lecciones de la recesión de 2008-2009 [Peru: Lessons from the recession of 2008-2009]," MPRA Paper 74889, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:74889
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    File URL: https://mpra.ub.uni-muenchen.de/74889/1/73-2010.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Macroeconomic policies; monetary policy; fiscal policy; economic recessions; keynessian policies;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • G01 - Financial Economics - - General - - - Financial Crises

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