In this week’s column, Jorge Jraissati studies the relationship between the COVID-19 crisis and the consumer price index in Spain. Jorge has been hearing anecdotes about price increases in Spain, which contradicts the macroeconomic indicators of the country.
In the middle of the biggest economic collapse of any nation in modern times, Venezuela is experiencing a fundamental, and perhaps irreversible, change within its economic system. Since 2019, Venezuela has been driving full throttle towards an economic phenomenon, which I refer to as implicit dollarization.
Pope Francis has manifested on numerous occasions his anti-capitalist vision of the world. In his latest encyclical, entitled Fratelli Tutti, Francis argues that the COVID-19 crisis exposed inherent problems of the free market system.
On Tuesday, Maduro proposed new legislation that encompasses the privatization of the oil industry, the possibility of returning expropriated companies to their original owners, and the free trade of strategy goods, such as fuel.
The main constraint for growth in Venezuela is not related to market failures nor any purely economic issue, but to the political institutions of the country. As a result, Venezuela exemplifies that the economic issues of most nations are a result of their bad governance.
Throughout the year, I have read numerous articles arguing about the harmful effects the coronavirus will have upon globalization.
Venezuela is constantly over the news given its unprecedented economic collapse. Yet, numerous people still think that the country’s economic hardships were caused by external factors, such as declining oil prices or financial sanctions from the international community. When in reality, the Venezuelan collapse is the direct consequence of the country’s inefficient, distorted, and hostile business environment.
There is a dramatic and worrying informational blackout in Venezuela. The regime censored all traditional media outlets. Social media has become more deception than information. And as if these problems were not enough, most Venezuelans don't even have internet access.
Since 2013, the Venezuelan economy has been in free fall. In just seven years, the country’s gross domestic product has lost nearly 70 percent of its value. This economic collapse represents the largest in the modern history of the western hemisphere.