Hyperinflation

[Graeme]

Venezuela is currently in the grip of rampant hyperinflation: REF: Reuters: https://www.reuters.com/article/us-ve...

Causes?
Analysis?
Impacts?
Questions?

Could it happen where you live? If yes, why? if no, why not?

[Michel]

Won't happen in Canada. Why? Because we don't have incompetent imbeciles like Maduro in charge of our economy. This is what happens when you let a political ideology's precepts dictate blindly your economic administration against all common sense. Maduro and his predecessor completely squandered Venezuela's oil resources, then were left with little when World oil prices fell.

[Ian]

Hyperinflation occurs when the government decides to solve its economic woes by printing far more money than there are goods to use it on, so each good requires increasingly more cash as what is in short supply sets the competition bar. The response from government is to print faster; the response from the people is to use it as soon as they get it because its value doesn't last, thus the speed of money goes up, exacerbating the problem.

Basically it is due totally incompetent governance. It should not happen anywhere, but in Venezuela the government has been totally incompetent for some length of time.