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 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.