Dirty Float, Commodity Prices, and Macroeconomic Fluctuations: A Model for Peru

This paper presents a macroeconomic model that replicates the key stylized facts of the Peruvian economy, namely the strong dependence of private investment and GDP on mineral export prices, within a framework where the Central Reserve Bank of Peru (BCRP) operates under a dirty float regime and the...

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Detalles Bibliográficos
Autores: Mendoza, Waldo, Vilca, Rafael
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2024
País:Perú
Institución:Pontificia Universidad Católica del Perú
Repositorio:Revistas - Pontificia Universidad Católica del Perú
Idioma:inglés
OAI Identifier:oai:ojs.pkp.sfu.ca:article/31204
Acceso en línea:http://revistas.pucp.edu.pe/index.php/economia/article/view/31204
Access Level:acceso abierto
Palabra clave:Dirty float
Commodities
Macroeconomic fluctuations
Descripción
Sumario:This paper presents a macroeconomic model that replicates the key stylized facts of the Peruvian economy, namely the strong dependence of private investment and GDP on mineral export prices, within a framework where the Central Reserve Bank of Peru (BCRP) operates under a dirty float regime and the Ministry of Economy and Finance (MEF) follows fiscal rules that endogenize public spending. The model is designed for undergraduate students and instructors of economics and builds on the work of Dancourt (2009), Dancourt & Mendoza (2016), and Mendoza (2019).