La hiperinflación develada

Abstract

After many years of Republican life characterized by sustained price stability, Venezuela discovered in 1974 that it was not immune from the economic disease of inflation. From that moment on, the threat was dormant until, at the end of 2012, a sharp price escalation began and deepened into hyperinflation in 2017, which has persisted to the present day. The great actor and responsible for the damage has been the Central Bank of Venezuela which, in breach of its constitutional obligations, incured persistent financing of the government deficit through the inorganic issuance of money. This work subjects price information to a statistical analysis whose outcome is conclusive in this regard. In response to the monetary phenomenon, among other effects, marginal propensity for savings disappeared from the Venezuelan economy, with all the consequences that follow.