Why Venezuelans Might Launder (In a Washing Machine) Their Dollars

The U.S. dollar is a handy backup when a country’s currency loses its value. After Zimbabwe’s hyperinflation hit its peak (or its nadir) in 2009, they used U.S. dollars but didn’t have enough. So, when the cash got too gray…

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.

Weekly Roundup: From Venezuela’s French Fries to the Army’s Pizza

Posts Roundup Sunday 11.01.15 How to be inches away from getting hired…more Monday 11.02.15 Why one-child could be here to stay…more Tuesday 11.03.15 The army food we eat at home…more Wednesday 11.04.15 What a pizza can teach us…more Thursday 11.05.15 The tough part of deciding who…

How to Make the Invisible Hand Disappear

With shortages of basic necessities, price controls, lack of foreign exchange and rising prices, Venezuela’s inflation rate is soaring.

Our Weekly Roundup: From Cheap Gas to Expensive Soda

This week’s everyday economics stories include subsidies, human capital, game theory, price controls, inelastic demand, and monopolistic competition.

Venezuela’s Biggest Economic Problem

The perverse incentives created by Venezuelan price controls result in shortages, underutilized resources, wasted time, soaring inflation and hoarding.

Price Ceilings: Venezuelan Toilet Paper Shortages

One shopper had to search for toilet paper in 6 stores. Another arrived in a supermarket just after a delivery but was limited to a 4-roll maximum. Attempting to deal with its toilet paper shortage, the Venezuelan government has said…

Do You Like Rent Control?

Asked if it makes sense to mandate lower rents for some apartments in large cities, many of us say yes. Lower rents facilitate diversity and they enable middle income municipal workers to live close to home. Affordability is good. Yes?…

Venezuela’s Price Controls

Reading that a Venezuelan retiree did not mind the food lines, I started thinking about how President Chavez’s price controls have changed incentives. The retiree, who has more time than money, now has the incentive to stand in line. Meanwhile,…

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…