Venezuela: the Macroeconomic Decline and its Consequences

Abstract

During the last few years Venezuela was the only country in Latin America, where the economic situation deteriorated significantly. In 2015 and 2016 the economy of the country was characterized by high rate of inflation, sharp increase of basic food prices and a deep economic recession. Instead of analyzing the political challenges of Venezuela, in my essay I would rather focus on the reasons which contributed to the severe economic downturn.