Inflation in Venezuela

 Inflation in Venezuela Article

Ethan Esquivel


May possibly 19, 2014

There are a variety of economic problems in today's contemporary society. One of which can be inflation, or maybe a raising of prices and cutting down of foreign currency value. Venezuela is currently experiencing inflation. Pumpiing, which was due to failure of socialism, is making the people protest because of higher prices and decrease currency worth. Venezuela is within a state of heavy inflation. In Feb ., inflation increased to 57 percent (Minaya). Problems with the exchange charge and too much aggregate demand are some of difficulties causes of inflation (Jay). The inflation price in Venezuela in 2012 was just ten percent, but started to rise in the Fall, and so did the black industry rate with the dollar (Weisbrot). In 2012, Venezuela's inflation price was only ten percent, yet due to concerns in the economy, this began to within the Fall season. This was a precursor towards the protests in 2013, where people were protesting the government due to high pumpiing rate, that has been then around forty percent. There are protestors in Venezuela protesting the us government because of high inflation. Challenges in the economy and changes in the authorities have contributed to inflation in Venezuela. " …the strength element is that Venezuela is definitely an oil-producing economy. And what this has meant is that it receives lots of petrodollars flooding the economy, which are likely to raise rates in general, as this money comes into the economy and, basically, boosts the money source in the country and tends to make every thing, as a result, more expensive” (Wilpert). When the Chavez government made to socialism, there was a major capital flight, which essentially lowered the importance of the forex (Wilpert). " Venezuela was hit, inside the 2008 global economic entree, with a price drop of their oil, causing fewer us dollars to be designed for imports and currency control. This generated Venezuela credit money, rather than paying for the imports, using its foreign currency reserves” (Wilpert)....

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