Inflation in Venezuela

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Economy Inflation in Venezuela
Economy Inflation in Venezuela

Written By: Mateo Tudela

Economy Inflation in Venezuela

After many years of prosperity Venezuela faces inflation. What is inflation? A popular web page called Investopedia says that “Inflation is the rate at which the general level of prices for goods and services rises, and in the end purchasing power falls.” You may also ask yourself, what is the inflation rate? Inflation rate is a measure of the percentage decrease in currency value over a defined period of time (usually over one year) according to Inflation Wolrd Facts. When speaking about the country of Venezuela, Nelson Merentes, the president of the Central Bank of Venezuela (Banco Central de Venezuela) also known as BCV said that an average inflation of 14% and 16% is estimated for this year, talking about 2013. In the other hand, William Neuman, New York Times writer says that “Inflation for the 12 months ended on Jan. 31 was 26%, one of the highest rates in Latin America.” "Venezuela is the fifth largest economy in Latin America, but during the last decade, it's been the worst performer in GDP growth," says Arturo Franco of the Center for International Development at Harvard University. What is GDP? It means Gross Domestic Product. “An inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Often referred to as "constant-price," "inflation-corrected" GDP or "constant dollar GDP". "said by Investopedia. Deflation is also a term used in the economics, according to the web page Crisis Times, deflation is a fall in the general price level. -------------------------------------------------

Venezuela’s governmet continues to insist that the problem is caused by "speculation" and by "monopolies". One problem that complicates their economy is the exesive printing of money. This means that there is more money but with less purchising power. People have more...
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