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

Authors

DOI:

https://doi.org/10.18800/economia.202402.004

Keywords:

Dirty float, Commodities, Macroeconomic fluctuations

Abstract

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).

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Author Biographies

  • Waldo Mendoza, Pontifical Catholic University of Peru

    waldo.mendoza@pucp.pe

  • Rafael Vilca, Pontifical Catholic University of Peru

    rafael.vilca@pucp.edu.pe

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Published

2024-12-27

Issue

Vol. 47 No. 94 (2024)

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Dirty Float, Commodity Prices, and Macroeconomic Fluctuations: A Model for Peru. (2024). Economia, 47(94), 76-105. https://doi.org/10.18800/economia.202402.004