Venezuela: Saving The Currency – OpEd

Since their independence, Latin American countries have displayed a common fervor for populist socialism. Whether it is a residue of three centuries of European imperial rule, or simply a fondness for charismatic leaders – and an extraordinary talent for producing them – the widespread formula of clientelism and cronyism disguised as socialism has proven to have devastating consequences for the continent’s economic, social and political development. Nowhere is this phenomenon displayed more clearly at present than in the Bolivarian Republic of Venezuela. The country is suffering its worst humanitarian and economic crisis in history, which calls for an urgent solution.The experience of a number of former socialist countries suggests that a key to [improving] Venezuela’s [economy] lies in forsaking monetary policy autonomy and in turn gaining a stable, fixed exchange rate and international capital mobility. More…