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…
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…
Subsidies and taxes determine the price of gasoline. Whether gasoline is cheap or expensive, its price affects people’s incentives and national tradeoffs.
The perverse incentives created by Venezuelan price controls result in shortages, underutilized resources, wasted time, soaring inflation and hoarding.
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…
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