The price of populism “the new economy” Venezuela’s inflation could reach 10000000%


							Цена популизма "нового экономического курса» Венесуэлы: инфляция может достичь 10000000%

The problems in the economy of any countries, as a rule, aggravated in the periods of the reign of the populists. And became chronic because lately there are some populists replaced the other. The rhetoric of some politicians who intend to come to power — purely populist. Once in power, they will pursue the economic policies appropriate. What is the result? Look at Venezuela, Argentina, Turkey.

Venezuela — the oil-rich country in the world for many years and is in deep crisis. Because of corruption and inefficient management of the economy she has almost exhausted foreign exchange reserves required for the purchase abroad of foodstuffs, medicines and basic necessities. These factors have already caused a mass migration of people from the country.

In August, Venezuelan President Nicolas Maduro announced the increase of salaries in the country. The increase was the fifth in a year. The announcement took place on the eve of the denominations of Bolivar.

Economic reality, in contrast to the “sweet” promises of the populists, becoming the results of irresponsible decisions, punishes mercilessly. And the results of such decisions are reflected in the next review of the IMF.

In October report, the IMF “world economic Outlook”, international monetary Fund forecasts inflation in Venezuela in 2019 at the level 10000000%!

According to Fund’s forecasts, the rate of economic growth of Venezuela this year will fall by 18% in the next year by 5%.

The IMF also revised its forecast of inflation in Venezuela to 2018. Previously, the Fund predicted that the inflation rate in the country in the current year could be 1000000%. Now this indicator at the level of 1370000%.

Earlier, the head of one of departments of the IMF, Alejandro Werner warned that the financial policy of the government of Venezuela, is reduced to the constant printing of money, and this will inevitably lead to cosmic inflation. He compared the situation in Venezuela with the hyperinflation that occurred in Germany in 1923 or in Zimbabwe in the late 2000s.

So, to give the populists a chance to win in the elections means to deprive the future of not only themselves but also their children, perhaps grandchildren. So you need a very cautious attitude to the political forces that promised us “rivers of milk and honey” immediately after coming to power. And those who offer simple recipes of our problems — simple solutions are usually complex consequences! In a better economy, higher standard of living, Ukraine can count only through painstaking work over several decades.

Recall that the Venezuelan government for many years did not publish the country’s economic performance.

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