Greek Lessons for Venezuela

Venezuela, just like Greece, enjoyed and squandered large amounts of money as a result of a remarkable oil bonanza and got heavily into debt by doing so. Venezuela, unlike Greece, does not have a Troika to give it a helping hand. Instead, it has the Chinese and the Russians who might provide some financial support (and they are doing so), which may represent an enormous cost for the nation in the long term. Venezuela, unlike Greece, has avoided the trap of dollarization (at least until now). The most important thing is that Venezuela, just like Greece, lacks measures to stimulate the economy, generate growth and create jobs. And this is precisely what renowned economists and businessmen have been calling for. More…