Stabilization strategies: Peru
Abstract
Written just before the new president of Peru, Alberto Fujimori, takes the position,
this article incorporates the necessity of banish the populism and take emergencial
measures together with long-run measures in order to obtain an effective stabilization of the
economy. It emphasizes what could be considered consensus among the economists from
countries that have experienced chronic inflation: equilibrium of budget deficit, shock therapy,
necessity of income policy. It is concluded that in spite of the costs of an adjustment to be
done, the less privileged classes will suffer much less than in continuous inflationary context.
JEL Classification: O43; E60; E31.
Keywords: Stabilization political economy Peru