IMF Staff Country Reports

Peru: Selected Issues Paper

Publication Date:

February 1, 2012

Electronic Access:

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Summary:

Peru’s fiscal framework embedded in the Fiscal Responsibility and Transparency Law (FRTL) has proved to be effective in reducing debt. The FRTL embodies some countercyclical elements in response to output or commodity price shocks. The combination of a provision for a moderate deficit on the downside, and a current expenditure cap on the upside, allows for some countercyclical policy. It still has pockets of procyclicality in the face of large shocks to output or commodity prices.

Series:

Country Report No. 2012/027

Subject:

Commodity prices Financial sector policy and analysis Financial sector stability Fiscal policy Fiscal stance Macroprudential policy Poverty Prices