Venezuela’s neighbours will feel its pain

Despite an economy in free fall, harrowing shortages of medicines and foodstuffs, rock-bottom oil prices, nearly depleted foreign exchange reserves, and the worst inflation on earth, the government of Nicolás Maduro has steadfastly refused to come up with even the most rudimentary policy response. The currency remains officially pegged at over 100 times the black market rate and untenable subsidies keep domestic petrol prices at pennies on the gallon. The government has even failed to introduce larger bill denominations, leaving Venezuelans with a currency that tops out at a ludicrous $0.15. More…