## Peru: Monetary and Exchange Rate Policies, 1930-1980

_IMF Working Papers, June 1, 2012_

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## Bibliographic details
- Authors: Gonzalo C Pastor Campos
- Published: June 1, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475505146.001

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### Scope and purpose
- Reviews monetary and exchange rate policies in Peru in 1930-80.
- Covers major transformations to the world economy, including the post-1929 crash and WWII.
- Examines changing economic paradigms, such as the collapse of the gold standard and the rise and fall of the Bretton Woods system of fixed exchange rates.
- Emphasizes the lasting partnership between Peruvian policymakers and the Bretton Woods institutions, while stressing the local authorities’ ownership of final policy decisions.

### Core findings and analysis
- During the fifty year period under analysis, the Peruvian authorities sought to deliver nominal exchange rate stability.
- Achieving nominal exchange rate stability often came at significant cost:
  - Introduction of market distortions.
  - Incurrence of heavy losses in international reserves.
- The review situates Peru’s policies within global institutional frameworks and major historical shocks (post-1929 crash; WWII; collapse of gold standard; Bretton Woods era).

### Policy emphasis and implications
- Persistent priority given to nominal exchange rate stability over market flexibility.
- Interaction with Bretton Woods institutions characterized by sustained partnership but final policy ownership remained with local authorities.
- Trade-offs highlighted:
  - Stability versus market distortions.
  - Stability versus reserve depletion.

### Subjects and keywords (as listed)
- Subjects: Central banks, Exchange rates, Exports, Foreign exchange, Imports, International reserves, International trade, Real exchange rates
- Keywords: balance of payments, Bretton Woods system, central bank, economic growth, Europe, Exchange rates, Exports, floating exchange rate, free market, Global, Imports, International reserves, monetary unit, nominal exchange rate, Peru monetary and exchange rate policies, Polak model, rate of exchange, Real exchange rates, U.S. dollar, WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/peru-monetary-and-exchange-rate-policies-1930-1980-26024_