4 ms·

Fine, let's say he resigns. What actions should the leader who takes over do to turn the economy around?

by ZenoArrow 10y ago

sg47 10y ago
Figure out what else you can export. Borrow and spend on public infrastructure projects.
- chimeracoder 10y ago
  > Borrow and spend on public infrastructure projects. That's a little hard to do when you're currently facing hyperinflation.
  - mullen 10y ago
    Stop running the printing presses. Venezuela's hyperinflation is caused by one thing and only one thing, Venezuela is just printing money as fast as it can.
    - chimeracoder 10y ago
      > Venezuela's hyperinflation is caused by one thing and only one thing, Venezuela is just printing money as fast as it can. Okay, then how are you going to "borrow and spend on public infrastructure"? Where is that money going to come from? If you're not going to print it now, you can float a bond, but that bond is going to be backed buy the promise of future solvency. And investors have very little reason to have faith in the future solvency of that government, which means we're back to either printing money to fulfill the bond or defaulting.
      - mullen 10y ago
        > Okay, then how are you going to "borrow and spend on public infrastructure"? Where is that money going to come from? Countries suffering from hyperinflation don't borrow and spend on public infrastructure. They run the printing presses to make money so they pay off the military, police and their high level supporters to stay in power. > If you're not going to print it now, you can float a bond, but that bond is going to be backed buy the promise of future solvency. No one is buying bonds from a country suffering from hyperinflation. That would be crazy. Unfortunately for Maduro, the only way to solve this problem is to replace the government, introduce a new currency and stop running the printing presses. Okay, it's not THAT simple, but it is a good start.
        chimeracoder 10y ago
        > No one is buying bonds from a country suffering from hyperinflation. That would be crazy. Yes, that's what I'm saying. Which is why the "solution" isn't as simple as "borrow and spend on public infrastructure".
tim333 10y ago
Merely allowing normal currency free currency trading rather than the strange mess they have at the moment and dropping price controls would fix a lot of the problems. Also allowing largely free trade and freedom of doing business and charging a normal market price for gas would help. They could also apologize to the likes of Maria Lourdes Afiuni and try to reinstate rule of law and return some of the confiscated businesses to their owners. Venezuela used to be the richest country in South America and has possibly the worlds largest oil reserves. It's taken some impressively bad governance to get it to its present state.

Fine, let's say he resigns. What actions should the leader who takes over do to turn the economy around?

sg47 10y ago

Figure out what else you can export. Borrow and spend on public infrastructure projects.

chimeracoder 10y ago
> Borrow and spend on public infrastructure projects. That's a little hard to do when you're currently facing hyperinflation.
- mullen 10y ago
  Stop running the printing presses. Venezuela's hyperinflation is caused by one thing and only one thing, Venezuela is just printing money as fast as it can.
  - chimeracoder 10y ago
    > Venezuela's hyperinflation is caused by one thing and only one thing, Venezuela is just printing money as fast as it can. Okay, then how are you going to "borrow and spend on public infrastructure"? Where is that money going to come from? If you're not going to print it now, you can float a bond, but that bond is going to be backed buy the promise of future solvency. And investors have very little reason to have faith in the future solvency of that government, which means we're back to either printing money to fulfill the bond or defaulting.
    - mullen 10y ago
      > Okay, then how are you going to "borrow and spend on public infrastructure"? Where is that money going to come from? Countries suffering from hyperinflation don't borrow and spend on public infrastructure. They run the printing presses to make money so they pay off the military, police and their high level supporters to stay in power. > If you're not going to print it now, you can float a bond, but that bond is going to be backed buy the promise of future solvency. No one is buying bonds from a country suffering from hyperinflation. That would be crazy. Unfortunately for Maduro, the only way to solve this problem is to replace the government, introduce a new currency and stop running the printing presses. Okay, it's not THAT simple, but it is a good start.
      - chimeracoder 10y ago
        > No one is buying bonds from a country suffering from hyperinflation. That would be crazy. Yes, that's what I'm saying. Which is why the "solution" isn't as simple as "borrow and spend on public infrastructure".

tim333 10y ago

Merely allowing normal currency free currency trading rather than the strange mess they have at the moment and dropping price controls would fix a lot of the problems. Also allowing largely free trade and freedom of doing business and charging a normal market price for gas would help. They could also apologize to the likes of Maria Lourdes Afiuni and try to reinstate rule of law and return some of the confiscated businesses to their owners. Venezuela used to be the richest country in South America and has possibly the worlds largest oil reserves. It's taken some impressively bad governance to get it to its present state.