How Venezuela can stop hyperinflation – now

Redenominating the currency will not work, says Steve Hanke

Protests in Venezuela
A policeman watches protesters in Maracaibo.
María Alejandra Mora/Global Panorama

Venezuela, ravaged by corruption and incompetent policy-making, is currently embroiled in the world’s 57th episode of hyperinflation. Since the beginning of October, the bolivar has lost 74% of its value on the black market (read: free market). In consequence, wheelbarrows have replaced wallets.

In an attempt to remedy this inconvenience, on November 30, 2016, Venezuelan officials announced a misguided and foolhardy plan to issue larger-denominated bolivar bills. With over a two-month delay, 30

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