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The distortions these kind of controls generate cannot be explained to someone who lives in a normal economy. Here in Venezuela, it's much better to go in to d
by rafaelm 13y ago
The distortions these kind of controls generate cannot be explained to someone who lives in a normal economy.
Here in Venezuela, it's much better to go in to debt (get loans to buy stuff like refrigerators, TVs, etc) than to use any unexpected or larger than usual income to pay off your debts because of the high inflation rate.
Only in Venezuela can a car cost more the minute you drive it out of the dealerships (if you can find them), than in the showroom floor.
- pmelendez 13y ago>"Here in Venezuela, it's much better to go in to debt (get loans to buy stuff like refrigerators, TVs, etc)" That is pretty much true in most countries but for different reasons. Over there, inflation rate is usually higher than the controlled interest rates. On the other hand, in other countries stores give you cheap loans to impulse sales. In any case I am agreed with you that you have to spent some time over there to understand the distortion of a economy with a high inflation. Also you would understand how easy is for a government to manipulate economic metrics and give a different impression from outside the country.