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Matias,
ReplyDeleteGiven that you seem to have very good knowledge of economics in South American nations, do you have any comments on the recent economic crisis in Venezuela? (shortages, high inflation etc.).
Particularly the role of their fixed exchange rate and exchange controls? (which I gather have caused perverse effects depriving producers of the foreign exchange they need for factor inputs).
Do you know any good Post Keynesian analysis of Venezuela?
regards
Hi:
DeleteShort replies. Inflation is associated I'm pretty sure to extensive devaluation in the black market, and higher prices of imported goods. And in spite of the oil price boom, reserves are not that high. There has been little effort in trying to promote import substitution. And for a left of center country, fiscal policy was very timid, at times contractionary. Leonardo Vera, as student of Phil Arestis, is a good friend and a prominent Venezuelan Post Keynesian.