Venezuela: Continuing to Swim Against the Tide

As this blog has noted, and at times celebrated, most economies have continued on in their efforts to liberalize their international trade and their domestic economies, notwithstanding the turbulent and uncertain economic environment. Having said that, and with the regularity of day following night, Venezuela continues to follow a failed model of central planning.  To wit, part of legislation before the National Assembly, would require the bank to make loans to “productive sectors” to be determined by the government.  Good evidence of the fact that Venezuela is “swimming against the tide”, is the fact that inflation is out of control: prices rose 28.9 percent in September from the same month a year earlier.

Venezuela Bank Law May Weaken Autonomy, Spur Prices