Hyperinflation in Venezuela

Case Study

Abstract

Venezuela entered hyperinflation at the end of 2017, preceded by several years of large budget deficits and declining oil revenues. Despite many policy attempts to bring inflation under control, including currency redenomination, introduction of a new cryptocurrency, allowing de facto dollarization, and easing price controls, annual inflation rates exceeded 2000 percent in 2020. Food insecurity was widespread, millions of people had left the country, and the United States had enacted stringent economic sanctions against the government and President Maduro. Was the Venezuelan hyperinflation the result of policy mistakes, external shocks or economic sanctions? What measures could stabilize the economy?

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Attributes

Attribute NameValues
Document Type
  • Case Study

Creator
  • Lakshmi Iyer

  • Francisco Rodríguez

Date Created
  • 2021-09-17

Publisher
  • Keough School of Global Affairs

Subject
  • economic sanctions

  • exchange rates

  • fiscal deficit

  • hyperinflation

  • inflation dynamics

  • inflation expectations

  • macroeconomics

  • money supply

  • oil markets

  • price controls

  • Venezuela

Related Resource(s)
Language
  • English

Recommended Citation
Record Visibility Public
Content License
Departments and Units

Digital Object Identifier

doi:10.7274/r0-z7wm-f385

This DOI is the best way to cite this case study.

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