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    Vishesh Nu
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    Venezuela's economy collapsed in recent years due to heavy reliance on oil exports and poor economic policies. When oil prices crashed in 2013, it exposed the country's economic vulnerabilities. Runaway inflation, shortages of basic goods, and hyperinflation have crippled the economy. The government's excessive spending, currency controls, and money printing have worsened inflation. Hyperinflation has greatly diminished citizens' purchasing power and standard of living. To stabilize the economy, Venezuela must reduce inflation through sound monetary and fiscal policies.

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    Venezuela's economy collapsed in recent years due to heavy reliance on oil exports and poor economic policies. When oil prices crashed in 2013, it exposed the country's economic vulnerabilities. Runaway inflation, shortages of basic goods, and hyperinflation have crippled the economy. The government's excessive spending, currency controls, and money printing have worsened inflation. Hyperinflation has greatly diminished citizens' purchasing power and standard of living. To stabilize the economy, Venezuela must reduce inflation through sound monetary and fiscal policies.

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    © All Rights Reserved
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    6 views6 pages

    Mac Cia

    Uploaded by

    Vishesh Nu
    Venezuela's economy collapsed in recent years due to heavy reliance on oil exports and poor economic policies. When oil prices crashed in 2013, it exposed the country's economic vulnerabilities. Runaway inflation, shortages of basic goods, and hyperinflation have crippled the economy. The government's excessive spending, currency controls, and money printing have worsened inflation. Hyperinflation has greatly diminished citizens' purchasing power and standard of living. To stabilize the economy, Venezuela must reduce inflation through sound monetary and fiscal policies.

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    © All Rights Reserved
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    of 6

    (NTRODuCTION

    Wenezwel a Country ha has dominahed e uperinha


    hon stishius around wond n he Pas edade From

    oen o Hhe idest countric wthhipoenbial

    Soavina iatakon sa
    gro , downall h

    ing from 2013. Tis avide provides an

    vcasons behund he colapse .He Venezuelan ecomam


    o wwplenentahon o poli i
    mompekat
    thar had
    tarin eftecs Jkahon,empogmen nd

    econom hole

    BAcKGRoUND AND HISTORY


    Vene zuela ha hsoitly CIunu wm onassivt

    ol eesves and benciheà hom he loaom


    ountry
    he ealy 2900.Ol gaus ose sadil
    bavrel
    n g a , gaingom 1o pe
    -cal 120 er bavrel. The euanom Popered
    907 He countr o h . The eden a he iene

    -Hugo have z Oxs osl windbll Poev socia


    Progtams and bdies Fod and ene prodc h on. Sotial-

    Spending gpvenment Yoc rom 8/. uo o GDP


    -The headend allo laoroused agans huve o expovh,creshig
    budae d&ub in all ears shen as n okie.

    qoveroment econom mismananement nadLona krm Lonse.quen


    as direded
    overomcnt spending wa no owaxd inveshen

    Mha ould redute he Countrus dependenuy on oil

    Exoro priakions and nsionelizakions disoura.aed oreian


    Coveian
    inveshment na could 've províde e Caun wih increast

    perhse and capil. Prste Conrols Crested marke distorhon L

    and shled he sector

    HECoLAPSE
    In 201 shen oil ries CYashed wolui de, he oi

    Yeliant naion econormy sitn was broadly Vicwed as

    unsustainable collapsed an newlelecred resident


    Nrdnolay Haduro was bsotten he blous

    while o e r maor
    many CommoSim uex producers vse he

    boom build oreion exdnanae resexveA OrSoveve

    ealm Funds miiqae r i rom b sumas


    Commo Piws , ne Cnaue z oovexamanr Hhe oknev

    hand Creahed Sucn Saalizshon und quard acaint

    polentisl kurore al in oil pria. The el in o pries

    Shwane public inance, inshead o adjusina scal poliutea

    hugh a reaes and spendina , s Maduro governma


    broe h a dre i youina ovdqet dera b prinh
    more and mare
    mone hiy e rOY
    judgement Cause

    exhen swe intahon, hl in economi aroh and a d e sptad

    Cconomiu contrachon he
    $otouna ass age Provide sis
    inb
    ec psli ha On marocomic
    varialole suu as phahion
    and
    unempoment,

    tFFECT ON NFLATIO N
    Inflahon Telers o a e n e r al
    intrtasc Pries of

    9oods and SexviwA an econom

    hen Cpvernment nLreasA


    move
    monc, shts Supp CUTve
    monyr

    Crede 3rap) and nc ulibrivm

    Ponr Foromed. M a TeaulF value of mon


    detreaa and
    eaibium priue leve inurtayA. whc re

    i Serious dote
    Fmoneer njeon, inhahon soas

    wrenu loe vale Spontaneousl To

    quae Aton riedman One puk Inakon


    evemwhere a monetar phenoMenon
    5
    The atahed grap shows pile o Cup of

    coee to Jul 208


    Bovars rom reloruay
    p o coffee
    n Span o 6mons , e
    had ssochud. by ens 208,p«ias

    doulding eve 1days On

    (GRAPH 2)

    ovder b conol and Suppre huperinhaion,


    overment Coo He ollousin mcasurA: -

    Some oF Comrol So that


    UTrent polirea

    Cikigens Could
    purdnase and sell
    exn an
    unfred ans devalued cemanac at ano

    inhrodues neus COxrent, H boivay Sobevan o a a

    Yae s marhed in ormal price

    Value adde& intrease bani


    Yato intreases and o omplie nt qovern ment
    These montw
    twly inHak on
    poli w manaae
    cOunhy ou
    around 307.in May 2oi1, ali
    o auWnorik fovsou
    ypesinhahtn. Houver, monekam
    or or
    fired exdnanae a bolivar Soloerano

    Suheme hat rapired leaer manaac&men and

    hupevinftahion kindled hoseqenlu

    Concesn and
    Hypesinhaion Venczuea
    concre
    unhl monet auhorihs arYive a

    hrest wperimhahon, e
    plan eliminat

    Contac fuxiher and Guetter.A Poi nceds


    economy wil

    be Curbed
    Su hat ypevinfiahron
    Onc and or al an euent, be vekindles

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