Causes Of Hyperinflation In Venezuela

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Introduction
Venezuela is a country that is experiencing a high inflation rate in the world today. It’s inflation rate has reached up to 800 percent, marking it the worst economic crisis in it’s history. The hyperinflation has made Venezuelan Bolivar’s value to degrade tremendously and it is nearly worthless. The people in Venezuela are lacking the basic necessities for survival which has led them to turn towards bitcoin minding as an alternative.

In this essay, I would like to discuss what was the cause of the hyperinflation in Venezuela, how it has impacted on the society and the economy. Also, I will discuss on the current situation of Venezuelans’ measures taken to persevere .

Economic Concepts, Models and Application to Venezuela’s
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The food inflation averaged 65.68 percent from 2009 until 2015. However, the cost of food reached it’s highest of 315 percent in 2015. It has make it so hard for the people to afford the basic need of survival, food. Also, there is a lack

The economy has crushed and corruption has sought with criminal allegations reaching the highest levels. Violence has increased and the citizens’ daily life goes harder by the hour. The shadow of starvation and criminal activities threaten the government of Nicolas Maduro, three years after he was bequeathed power by the passing of Hugo Chavez.

In the latest news, Venezuelans are mining bitcoin as a temporary solution to survive. It has become so hard to even afford anything in the black market. Although, bolivars does not have much worth, everything that is sold is overly priced. The Bolivarian socialism are freezing prices of everything that when they froze the price of toilet paper, the country ran of it. After all, Venezuela’s electricity market is heavily subsidised under Nicolas Maduro’s rule that it’s almost free making electricity more affordable than basic necessities. It had created a window of opportunity for bitcoin miners. A miner who is able to run several bitcoin mining devices is able to make enough to purchase items like diapers and insulin
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One of the main reason is the socialism system that was started by Hugo Chavez, former president of Venezuela. The programmes and food subsidies only benefited when the oil prices were on it’s record peak. When the prices of one barrel of oil dropped to $26 per barrel, along did it’s total revenue. The subsides implemented were not able to function anymore . This leads to the next problem of the country’s economic failure, oil dependency. Venezuela is highly dependant on it’s oil production that it diversified neither its economy nor its electricity supply. Also, the excessive printing of money did not help in any way but losing it’s value and brought the country down with it. Venezuelans are unhappy with the lifestyle they have been facing up till this day. Will Venezuela be able to fight and end the hyperinflation like how Zimbabwe
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