How Venezuela Caught an Incurable Case of Dutch Disease

From the very beginning in 1922, Venezuela’s oil industry fueled governmental decisions that created an incurable case of Dutch disease.

Venezuela’s Economic Problems

Venezuela has 2 basic economic problems: The law of supply: Because price and quantity move in the same direction, if price goes down, then producers provide less. This takes us to Venezuela’s 27.1% inflation rate. President Hugo Chavez responded by…