Year : 2020, Volume : 24, Issue : 2
First page : ( 120) Last page : ( 127)
Print ISSN : 0971-8052. Online ISSN : 0974-0937. Published online : 2020  16.

Tackling venezuela’s Hyperinflation

Chandak Suyash

Abstract

This article highlights some of the major factors accounting for Venezuela’s economic crisis and hyperinflation, rooted in the almost exclusive dependency of the country on oil exports as well as profligate and corrupt public policies. Having been the wealthiest nation in Latin America, Venezuela has now become a case study in dysfunctional financial and monetary management with consequences aggravated by sanctions and other penalties inflicted by the US and its Western allies. This paper invokes the “natural resources trap” theory to explain Venezuela’s disastrous situation and suggests various possible remedies. A reform of the monetary system would require a change of government and political ideology. It would also necessitate international assistance to bring back confidence in the national currency and economy.

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