From 1982 to 1988, Peru and Chile stand out as countries whose interest rates were not consistent

Question:

From 1982 to 1988, Peru and Chile stand out as countries whose interest rates were not consistent with their inflation experience. Specifically, Peru's inflation and interest rates averaged about 125% and 8%, respectively, over this period, whereas Chile's inflation and interest rates averaged about 22% and 38%, respectively.
a. How would you characterize the real interest rates of Peru and Chile (e.g., close to zero, highly positive, highly negative)?
b. What might account for Peru's low interest rate relative to its high inflation rate? What are the likely consequences of this low interest rate?
c. What might account for Chile's high interest rate relative to its inflation rate? What are the likely consequences of this high interest rate?
d. During this same period, Peru had a small interest differential and yet a large average change.
How would you reconcile this experience with the international and with your answer to Part b?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars... Fisher Effect
The Fisher Effect is an economic theory created by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates. The Fisher Effect states that the real interest rate equals the nominal interest...