We know it’s bad, but do we know what it means from an economist’s point of view?
Thankfully, we have @Econ_Vzla to tell us.
It means Venezuelans are quickly coming to the conclusion that there’s no worse business than holding bolivars. That only chumps hold bolivars, and if you’re unfortunate enough toget some your best bet is to rush off and trade them for more or less anything. It means the bolivar barely functions as a store of value at all anymore.
It means, in other words, that we better brush up on our Dornbusch. In 2014. It’s embarrassing.Caracas Chronicles is 100% reader-supported. Support independent Venezuelan journalism by making a donation.