Saturday, August 25, 2018

Hocus pocus economics in Venezuela

The socialist regime’s plan to rescue the economy will probably fail

 

NICOLÁS MADURO calls it “a really impressive magic formula”. His paquetazo rojo (big red package) features a new currency that lops five zeroes off the nearly worthless bolívar, a sharp increase in the price of fuel and a rise in the minimum wage of more than 3,000%.

Forget magic. The president’s formula, even with some welcome new bits of realism, will almost certainly fail to rescue Venezuelans from their economic agony.

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