ABSTRACT
The purpose of this chapter is to present a descriptive analysis of the Peruvian economy, highlighting important features prevailing during the period under investigation. To better achieve this goal, three separate yet interrelated topics will be covered: First, a simple but detailed exposition of the structure of the Peruvian economy, in which I will discuss very briefly the overall composition of output and the pattern of employment. Second, given the paramount importance it plays in any stabilization effort, I shall treat separately the essential characteristics of the external sector. Finally, I shall touch upon the roots and characteristics of the crisis of 1975, which, as stated in the introduction, found its most visible manifestation in a deficit of the balance of payments.
