Abstract
For five surprising years, from 1968 to 1973, Peru achieved the near miracle of social reform combined with good economic growth. As if in revenge, the classic catastrophes that have plagued so many Latin American countries when they have tried to move in new directions then surged up to stop the process: a foreign exchange crisis, accelerating inflation, paralysed growth, rising unemployment, and intensified social conflict. Was all this necessary? What might have been done better? And what might be done now to resume growth without further taking apart the reforms?
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