Textbook case about why central bank independence is so so important.
Veinte on
Submission statement: Peru’s political system escapes easy classification. It is nominally presidential but because of the country’s infamous “permanent moral incapacity” clause in the 1993 constitution, which is now invoked routinely, the president effectively serves at the pleasure of congress. Although there is a formal prime minister in congress, the president is its prime minister in practice. This state of affairs shows how presidential systems can become parliamentary with one simple trick.
randommathaccount on
> The strangest fact about Perú is that none of this has stopped the economy from humming along. GDP grew around 3.4 percent through 2025. Fitch, Moody’s, and S&P all rate Perú investment grade, with stable outlooks. Inflation sits at 2 percent, among the lowest in Latin America. The share of the population living on less than $8.30 a day has halved since 2001.
> The explanation lies in where actual power resides. Perú’s macro framework—the central bank, the fiscal rules, the investment protections—is run by technocrats whose positions don’t change when presidents fall. If anything, markets have come to view congressional dominance as a perversely stabilizing force: weak presidents don’t have the muscle to mess with technocrats.
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That’s a good thing?
Textbook case about why central bank independence is so so important.
Submission statement: Peru’s political system escapes easy classification. It is nominally presidential but because of the country’s infamous “permanent moral incapacity” clause in the 1993 constitution, which is now invoked routinely, the president effectively serves at the pleasure of congress. Although there is a formal prime minister in congress, the president is its prime minister in practice. This state of affairs shows how presidential systems can become parliamentary with one simple trick.
> The strangest fact about Perú is that none of this has stopped the economy from humming along. GDP grew around 3.4 percent through 2025. Fitch, Moody’s, and S&P all rate Perú investment grade, with stable outlooks. Inflation sits at 2 percent, among the lowest in Latin America. The share of the population living on less than $8.30 a day has halved since 2001.
> The explanation lies in where actual power resides. Perú’s macro framework—the central bank, the fiscal rules, the investment protections—is run by technocrats whose positions don’t change when presidents fall. If anything, markets have come to view congressional dominance as a perversely stabilizing force: weak presidents don’t have the muscle to mess with technocrats.
Waow