La estabilidad de precios y el crecimiento económico: lecciones de la experiencia peruana

Abstract

This article discusses the main channels through which high inflation rates reduce economic growth. When inflation rates are high, typically greater than 10 percent, the correlation between inflation and GDP growth is negative in the long run. On the contrary, when inflation rates are low, families and companies can plan their decisions with greater certainty, which favors saving and enhances the transmission of monetary policy. That is why, with low inflation, Peru has managed to position itself as one of the Latin American economies with lower inflation and higher economic growth rates for GDP, which has favored the reduction of poverty and the widening of the middle class in Peru.