A very good, depressing post by Frances Coppola on Venezuelas unfolding economic crisis, and more generally the economic dynamics of populist Latin American governments. Venezuela is headed for default, hyperinflation, disorderly regime change and a wrenching fiscal adjustment. And the people who will suffer - indeed are already suffering - are the poor that Chavez and Maduro set out to help, just as the poor in Chile and Peru suffered. She adds: Much of what is described here also applies to Greece. The only difference is that Greece is in the Euro, so hyperinflation is impossible and all the adjustment must come from brutal fiscal retrenchment and sharp falls in real incomes. But if it were to leave the Euro, or worse, be thrown out for non-compliance with Troika demands... But I think Greek exit is not that likely (timestamp). coppolacomment.blogspot.ca/2015/01/a-latin-american-tragedy.html
Posted on: Sun, 04 Jan 2015 11:49:21 +0000
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