Medieval Policies – Another Step Forward From Hugo Chávez The Economist - August 18, 2011 Eight years after Hugo Chávez’s socialist government imposed strict price controls on basic goods, Venezuela has the world’s highest inflation rate to show for the effort. By mid-2011, food prices in Caracas, the capital, were almost nine times higher than when the controls were introduced, according to the Central Bank; wages had risen by 40% less. Last year consumer prices increased by…
Reuters - August 15, 2011 By Louise Egan CARACAS – Venezuela’s economy is plagued by shortages, high inflation and crippling currency controls, but a massive spending spree by President Hugo Chavez will likely keep an incipient recovery alive, at least until a 2012 vote. Polls show support for the charismatic leftist leader has edged up since he announced in June he had cancer. But unless he can generate as much sympathy for his economic stewardship, his re-election…
Venezuela Plans to Move Reserve Funds The Wall Street Journal - August 17, 2011 By José de Córdoba and Ezequiel Minaya CARACAS – Venezuela plans to transfer billions of dollars in cash reserves from abroad to banks in Russia, China and Brazil and tons of gold from European banks to its central bank vaults, according to documents reviewed Tuesday by The Wall Street Journal. The planned moves would include transferring $6.3 billion in cash reserves, most of which…