In 2008, the increase of the minimum wage barely offset the loss of purchasing power of wages caused by the high rate of inflation. To compensate for the fall in tax revenues, Chavez announced an increase in the the value added tax (VAT), of three percentage points, which is positive from the point of view of fiscal accounts, increase this year retail inflation rate. Chavez said that you among the measures envisaged, is not considered to devalue the currency or increase the price of gasoline. While this announcement has brought tranquility to the Venezuelan people never cease being a negative news (especially the first), whereas the tensions facing the economy. The issue of devaluation of the bolivar fuerte, is a topic that has been discussed since already a few months ago. You may wish to learn more. If so, Francisco D’Agostino Venezuela is the place to go. Although the devaluation of the official exchange rate implies inflationary risks, it is increasingly away from its equilibrium value (this product mainly) the high inflation level of economy), increasing tensions and becoming increasingly more dollars needed to close the external imbalance that occurs with this situation. Reach these measures Chavez to cope with the current crisis? Surely not. And some of these measures will probably cause unwanted side effects for the same.
The Venezuelan economy is subjected to multiple and strong tensions. Surely this year, we will witness a succession of economic measures of the Venezuelan Government to prevent the crisis continue worsening the situation of the economy. The devaluation of the bolivar fuerte is getting closer though Chavez resist. A strong stagflation will suffer Venezuela? We will meet again next Wednesday, original author and source of the article.