Peru: Radical Rules Imposed on Hot Money

Although one of the biggest changes to Peru Central Bank (BCRP) policy was reported in the English speaking press last week, it has remained almost untouched by commentaries in Peru itself. This is a very strange state of affairs when one considers the importance it will have on the country’s economy in the months to […]

Peru: Is a Poverty Level of 30% Possible by 2011? (Or ‘Carranza, Have a Word with Your Math Teacher, please?’)

On February 23rd Peru’s Minister of the Economy boldly proclaimed that last year poverty rates had dropped by 2.5 percentage points, going from 44.5% of the total population in 2006 to 42.0 in 2007. This implies that 600,000 people have escaped from poverty (1). This is an achievement that merits warm congratulations, though perhaps not […]

Peru: The Road to Capital Controls (Or ‘Carranza, Have a Word with Your Bank Manager, Please’)

Surprisingly, and surely without wanting to get in the way of the avalanche of inflows fortunately entering Peru thanks to the benign policies of Peru’s Central Bank (BCRP), on January 18th the BCRP issued a circular* which modified Article 7 of a previous circular** the “Regulation for Acquisition and Negotiation of Deposit Certificates issued by […]

Ecuador’s Tax Reform: Kalecki Redux?

The government of President Rafael Correa, now celebrating his first year in office, has proposed a ‘citizen’s revolution’ that aims for economically sustainable, decentralized and socially inclusive development. Correa has formed new alliances with lower and middle class sectors and isolated the establishment powers of the nation’s oligarchy, its main media outlets, financial capital, central […]