Economic Affairs

Lessons from Venezuela's calamity

Spending without saving and refusing to heed expert advice are among the factors that drove a rich country to poverty in less than a decade

ST ILLUSTRATION: MIEL

One of the most eye-popping headlines last week was that Venezuela's inflation rate is headed for a million per cent by the end of the year, according to the International Monetary Fund (IMF).

Imagine what that means. It means if you have $10,000 in cash, a year later, you'd be left with one dollar's worth of purchasing power. You might be able to buy a cup of coffee, if you're lucky.

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A version of this article appeared in the print edition of The Straits Times on August 01, 2018, with the headline 'Lessons from Venezuela's calamity '. Print Edition | Subscribe