Renzo studied Economics at the Universidad del Pacifico, Lima. He joined the Central Bank of Peru (BCR) in 1982 after being the top student in the BCR University Extension Course, which brought him to the LSE. He graduated with an MSc in Economics from the LSE in 1986.
Renzo’s first position with BCR was economic researcher and he subsequently received a number of promotions. In 1988 he became head of external sector analysis; in 1990, deputy manager of research and global analysis and in 1991, manager of economic studies. His final promotion was to general manager of BCR in 2004 and he remained there until his death in 2021.
While employed at BCR, Renzo also taught Political Economy at Universidad del Pacifico and was very much liked by his students. During the 1980s Peru experienced macroeconomic and political instability, and this was the time when Renzo first started working at BCR. Large fiscal deficits, price controls and a system of multiple exchange rates had fuelled hyper inflation and dollarisation of the economy.
Renzo was instrumental in designing and implementing macroeconomic policies to fight hyperinflation and to stabilise the economy. Price controls were abandoned, the exchange rate was allowed to float and public enterprises were privatised. Unconventionally, monetary policy and inflation targeting were implemented to allow prices to rise to their market values and not reduce inflation. This approach was innovative and controversial but proved to be essential in the fight against hyperinflation.
Renzo also believed that fiscal discipline and central bank independence were fundamental to restoring credibility for growth and stability. Indeed, the Constitution of Peru now affirms central bank autonomy and the bank’s mission of preserving monetary stability. Inflation targeting has continued to be a policy instrument of the bank and has contributed to the stability of the economy.
Renzo also contributed in the implementation of the structural reforms that brought Peru into the international community. He also led on the modernisation of the central bank and the continuous education of civil servants working for the bank. The tributes to Renzo come from all sources (press, colleagues, students and friends) … everyone agrees that Renzo always had Peru in his heart, that few professionals have given to Peru as much as Renzo did and that he has left an exemplary civil service vocational legacy.
Renzo is survived by his wife Monica and daughters Carla and Laura.
Carmen A. Li (MSc Econ LSE 1984; PhD Econ LSE 1991)
Jim Thomas ( BSc Econ 1960; Emeritus Reader in Economics and Research Associate, STICERD, LSE)