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Your graph shows a decline in production in the past year or so. The country has been experiencing major economical hardships for several years. The downturn in
by lnino 9y ago
Your graph shows a decline in production in the past year or so. The country has been experiencing major economical hardships for several years.
The downturn in oil prices only made worse something that was already awful.
Take a look at: https://tradingeconomics.com/venezuela/inflation-cpi https://tradingeconomics.com/venezuela/inflation-cpi
Of course 800% is worse than 100%.
But how do you explain 30%-100% inflation at a time when oil was at peak price?
It's simply impossible not to have inflation when you're printing money and flooding the economy with it -- no matter the supply side.
- tcbawo 9y agoInflation seems to only kick in when it enters the money cycle (non-banking sectors). The US Fed built up massive amounts of securities holdings over the last 10 years which injected a lot of money into the economy. However, inflation mostly never materialized because banks held onto that money instead of lending it out.