Venezeula economy

Venezuela

Starting in the 1990’s economic turmoil began to spread throughout South America. Venezuela was not immune to these economic problems. The once-thriving country experienced high levels of inflation and poverty, the result of a number of factors. This paper intends to examine Venezuela’s economy and the effect that inflation has on Venezuela, the United States, and the world banking system.
Economists differ in their views about whether the decision to lift the band restriction on the Bolivar will help ease inflation. I agree that by lifting the band restriction Venezuela can start to emerge from the current recession. The Venezuelan government must allow the Bolivar to set its own value in order to see how the Venezuelan economy is functioning. Venezuela has been struggling with high inflation for the past decade. It is important to see how Venezuela’s economic problems started and how the government’s recent actions will affect the Venezuelan eco...