01806cas a2200241 a 4500 AALejournalIMF016965 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475582741 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Western Hemisphere Dept. Peru : Selected Issues. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (64 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Selected Issues paper presents a comparative analysis of the macroeconomic adjustment in Chile, Colombia, and Peru to commodity terms-of-trade shocks. The study is done in two steps: (1) an analysis of the impulse responses of key macroeconomic variables to terms-of-trade shocks and (2) an event study of the adjustment to the recent decline in commodity prices. The experiences of these countries highlight the importance of flexible exchange rates to help with the adjustment to lower commodity prices, and staying vigilant in addressing depreciation pressures on inflation through tightening monetary policies. On the fiscal front, evidence shows that greater fiscal space, like that of Chile and Peru, gives more room for accommodating terms-of-trade shocks. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2016/235 Full text available on IMF http://elibrary.imf.org/view/journals/002/2016/235/002.2016.issue-235-en.xml IMF e-Library