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So what's left? Moving to a commodity-backed currency? Pinning it to another major currency? Bloomberg states the problem but doesn't even talk about whether Z
by technofiend 9y ago
So what's left? Moving to a commodity-backed currency? Pinning it to another major currency? Bloomberg states the problem but doesn't even talk about whether Zimbabwe fixed their problem and if so how so, much less what options are available to Venezuela. I mean sure I can Google it but it's surprising for Bloomberg to publish such a weak article. It's what I'd expect from USA Today.
- ghaff 9y agoZimbabwe effectively just abandoned their currency and let people use other currencies.
- Const-me 9y agoThe same happened here in 1990-s. That’s how we ended up using euro despite not being in the EU: https://en.wikipedia.org/wiki/Montenegro_and_the_euro https://en.wikipedia.org/wiki/Montenegro_and_the_euro
- gtirloni 9y agoBrazil had an interesting take on conquering hyperinflation that might apply to Venezuela too (although their current situation is much worse): https://www.npr.org/sections/money/2010/10/04/130329523/how-fake-money-saved-brazil https://www.npr.org/sections/money/2010/10/04/130329523/how-...
- jeffdavis 9y agoThat may work when inflation itself is the problem, but the country is otherwise holding together. Venezuela has serious problems. One neat trick won't save them.
- gtirloni 9y agoCompletely agree. As I said, Venezuela is in a much worse situation. They first need to figure out a government.
- mrfusion 9y agoI got to wondering if they did switch to the US dollar would the us issue more currency would would we just experience a small amount of deflation pressure?
- deleted 9y ago[deleted]
- lucozade 9y ago> So what's left? Putting someone economically competent in charge?