As an emerging markets investor in 19th century South America, it was tough to find out what was really happening. At best, up-to-date news had a three month journey. Even with good winds, the round trip between London and South…
Where Gasoline Is Most and Least Affordable
When we look at where the world’s gasoline prices are high and low, we could be surprised with their affordability.
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…
The Messages That Satellite Images Send
By showing illuminated areas of the world, nighttime satellite images can tell economic stories that relate to growth and contraction.
What We Can Learn from Venezuelan Inflation
Shortages, long lines, and panic buying are several ways that hyperinflation is creating chaos for local and foreign firms and consumers in Venezuela.
The Expensive Side of (Venezuela’s) Cheap Gas
Subsidies and taxes determine the price of gasoline. Whether gasoline is cheap or expensive, its price affects people’s incentives and national tradeoffs.
Venezuela’s Biggest Economic Problem
The perverse incentives created by Venezuelan price controls result in shortages, underutilized resources, wasted time, soaring inflation and hoarding.
Venezuela Has Cheap Gas But No Cars
At the official exchange rate, Venezuelans pay 5 cents a gallon for premium gasoline while the real price is closer to one half penny a gallon. The dark purple country at the northern tip of South America (below), Venezuela has the…