These graphs show –for the naked eye- a similar cycle over time, besides differences on timing and amplitude, there is a similar number of boom and bust processes. A first question to analyze is the existence of cointegration between those series, and if the answer is affirmative to evaluate the dependency of some from one. […]
The most common approach to lowering poverty rates is to have high economic growth, but recent evidence from Peru disputes this result, pointing out that high growth rates could be canceled out by high inflation rates, with as a consequence high growth rates and higher poverty rates.
Peruvian economic authorities are two as in many countries, one in charge of fiscal policy and other in charge of monetary policy. As in many countries too, fiscal policy is in charge of a Minister, who is an appointee of the President; and monetary policy is in charge of the head of the Central Bank, who in Peru is choose by the Congress. Until May 2008, both authorities had a point of agreement in economic policy and macroeconomic forecast, in a document called Multi-annual Macroeconomic Framework (Marco Macroeconómico Multianual), which is prepared by the Ministry of Economy and subscribed by the Central Bank, through an attached letter of acceptance.