works because it has a clear, singular mandate: maintaining price stability, for which it is entrusted, its Governor Julio Velarde stated.
"I believe the Central Reserve Bank works because its mandate is clear: price stability, which is its sole function. That is better than, for example, the North American Federal Reserve, which has a dual mandate and is uncertain whether to focus on recession or inflation," Velarde explained.
"Having a single, clear objective allows one to focus efforts on that goal. Ideally, there would be more institutions with similarly clear objectives that could focus on said goal," he added.
At the 37th Perumin Mining Convention, Velarde also said that the Peruvian State should have a Civil Service (public officials) to ensure the country functions effectively.
"We have not really managed to build a Civil Service, which is essential if we want to have a country that functions," the BCR head said.
"What is needed, however, is meritocracy. Perhaps seeking 1,500, 2,000, or 3,000 senior officials who are selected on merit, and whose leadership inspires those below them to progressively adopt more technical criteria," Velarde indicated.
"There are several factors that could genuinely help people become more productive. This requires a basic level of education aimed at enabling them to carry out fundamental tasks," he concluded.