VENEZUELA INFLATION

Dealing With
• Meaning
• Reasons
• Causes and effects
• Conclusion
• References
Bolivar feutre
What is Venezuela Inflation?
 meaning
• It is an hyper inflation and a period in which there is currency
instability
• Venezuela is experiencing this problem since February 1983
and is growing in double digit inflation rate and continued to
be grown by 1,00,000% in 2018
• In 2014 the IR increased by 69% was the highest record in the
world, again in 2015 it reached to 181% and made an another
record.
• Then the rate reached 600% in 2016, over 4000% in 2017and
16,98,488 in 2018.
• After 2018 the government has officially stopped estimating
the IR.
 CAUSES
• Devaluation of Bolivar
• Minimum wage
• Government spending
• Bolivarian propaganda
 Solutions
• Change of inflation rate calculations
• Bolivar feutre
• Introduction of higher denomination bank notes
• Withdrawal of 100 Bs.F bank notes
• Petro crypto currency
• Redenomination
• Introduction of larger bank notes.
Value of different currency Value of Venezuela
VEF= 0.02088 INR INR = 47.90098 VEF
VEF= 0.0003 USD USD = 3298.07692 VEF
VEF= 0.00027 EUR EUR = 3746.60476 VEF
VEF= 0.00043 AUD AUD = 2336.95601 VEF
 CONCLUSION
• A socioeconomic and political crisis that began
in Venezuela during the presidency of Hugo Chávez has
continued into the presidency of Nicolás Maduro.
• It is marked by hyperinflation, escalating starvation, disease,
crime and mortality rates, resulting in massive emigration
from the country.
• Objectively, that the money has no firm basis to give it a
value.
• Subjectively, that the people holding the money lack
confidence in its ability to retain its value.