By Sydney Jones – Re-Blogged From https://ijr.com
In 2017, Venezuela’s annual inflation rate rose to 4,068 percent, according to reports made by the opposition-led National Assembly.
According to The Wall Street Journal, the inflation rate has risen so rapidly that the government cannot print money fast enough to keep up with the demand. A U.S. dollar currently is worth more than 200,000 bolivars, the Venezuelan currency.
Federico Parra/AFP/Getty Images
Some experts are concerned that the crisis will only continue to get worse. Omar Zambrano, former economist for the Inter-American Development Bank, said he believes the country now faces an ultimatum.
“The authorities have lost control, they can’t stop creating bolivars even if they wanted to,” Zambrano said. “This ends in two ways: Either we adopt the dollar or we go back to bartering.”
The Venezuelan minimum wage has also suffered from high inflation, yet is still only equivalent to $1 a month, according to a Reuters report. The government blames this situation on economic aggression led by the American government, however, the cause of this inflation seems to to be much more complex than that.