Venezuela Should Consider Dollarization
Venezuela Should Consider Dollarization
By
Francisco Rodríguez
Replacing the bolívar with the dollar would mean losing a policy tool, but the short-term benefits might be worth it.
Venezuela’s economy is undergoing the largest contraction in recorded Latin American history. Between 2012 and 2017, per capita GDP fell by a massive 38 percent, 10 points more than the United States during the Great Depression. The government has stopped publishing inflation data, but private sector estimates put it at nearly 3,000 percent in 2017 and predict it will accelerate into five digits this year. Real salaries have been pulverized in the process...
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