At 20 years of 'Fujishock' and the phrase "May God help us" vote to vote
Wednesday, April 13, 2011
4weeks Pregnant And Accidently Swallowed A Bit Of
Decades of economic mismanagement topped by an administration that caused the collapse, which is now a case study led us to the brink Source
Trade 
See here how much gasoline rose, milk and other food after the fateful night of "Fujishock."
I came into the bar and I told my parents. Do not believe me. "You must have heard wrong," my father reassured me and the night passed without major upheavals. 
FOUR DEAD
The city rose gray and empty. The radio reported some looting riots and attempts were mostly discouraged by military patrols and the declaration of emergency in 11 cities. In total, four people died that morning.
My mother, like most people did not know what to do: most businesses were closed because no one knew what to charge, public transport raised their prices exorbitant due to rising gasoline and many people had to walk or share hoppers to get to work.
The first government of Alan Garcia had absolutely subsidized prices to such an extent that when Fujimori's coup cut prices soared into the stratosphere: a can of milk cost increased from I/.120.000 to I/.330.000 (175% more), a kilo of potatoes to I/.65.000 I/.250.000 (284%) and so forth.
French bread, food champion of the disadvantaged economies in modern times (bread and water), went from a I/.25.000 I/.9.000 cost of overnight. However, the increases were even more dramatic in the services (water, telephone and electricity rose from 20 to 30 times.) It was terrible because everything went up except wages. "Prices and wages Japanese Africans" was the sentence after a time when inflation reached 50% per month and prices increased by 21,000%. By 1993, annual inflation had fallen to 33%. Crazy.
WHAT WAS WHAT HAPPENED?
The relevant literature is extensive and Peru has become a case study of what went wrong, what should not be done and the dramatic departure that we were forced.
"This shows that only react when we are on the brink," said economist Roberto Abusada, former deputy economy minister.
"Everything was subsidized, the autonomy of the Central Bank was not and any call from the Palace of Government or the Ministry of Economy that proceeded to make inorganic emissions currency moved to the prices almost immediately [...] subsidies and fiscal deficits were financed through this mechanism and spend international reserves [...], was a brutal mess in fiscal and monetary policies, revenue fell to 4% of GDP [today is about 14.5% and it seems low] and there were several types of change (MUC) " Pablo Secada explained.
Therefore, for when it was time to pay, no how. Even the productivity index came back 4%. Ie if the economy had grown 2% or 3%, 4% had that against that growth was negative in practice.
"There was no other way than that of shock, because there was how to fund any other alternative such as that posed by" Seven Samurai "[as advisers nicknamed the equipment while still swearing Fujimori to implement such a drastic and radical], "says Secada.
Twenty years later, economic growth has been 5.5% on average per year, inflation is in single digits and do not paddle against ourselves. "God helped us and the lesson served? After all, that I/.675.000 gallon today only cost S/.0, 675. MORE INFORMATION
The original plan of former President Alberto Fujimori and current defendant did not contemplate such a drastic measure under any scenario. Only when he tried to approach for support to the Japanese Government and this is the condition to the reintegration and acceptance by Peru of the recipes from International Monetary Fund (IMF) was that there was the hard-setting.
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