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How to Stop Venezuela’s Hyperinflation? Brazil Offers an Idea

By Monica de Bolle

The 1994 “Real Plan” stopped 2,500% inflation, thanks to an ingenious tool that Maduro’s eventual successors may want to replicate.

There is no magic bullet for curing Venezuela’s hyperinflation. Although over the past several years Nicolás Maduro has flirted with the introduction of virtual currencies, slashed zeroes from mind-blowing values, and implemented half-baked currency reforms, none of these attempts have even remotely solved the problem. Venezuela’s prices have continued to triple on a monthly basis, making it the most severe hyperinflation to ever affect Latin America.

Given Maduro’s incompetence, and the Venezuelan public’s total loss of faith in his ability to administer the economy, it seems...

Read this article on the Americas Quarterly website. | Subscribe to AQ.

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