Alejandro Werner, the senior IMF official, said there is a “high” probability that Venezuela, which already has the world’s highest inflation rate, will see even higher rates this year. Noting that Venezuela’s annual inflation rate reached 56 percent last year, I asked him whether a country can maintain such inflation rates without falling into hyper-inflation —a situation in which the local currency becomes virtually worthless, merchants close down their stores, the entire economy collapses, and in many cases governments end up falling. More...
Saturday, February 8, 2014
Andres Oppenheimer: Venezuela’s biggest enemy — hyperinflation
Alejandro Werner, the senior IMF official, said there is a “high” probability that Venezuela, which already has the world’s highest inflation rate, will see even higher rates this year. Noting that Venezuela’s annual inflation rate reached 56 percent last year, I asked him whether a country can maintain such inflation rates without falling into hyper-inflation —a situation in which the local currency becomes virtually worthless, merchants close down their stores, the entire economy collapses, and in many cases governments end up falling. More...
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment