Venezuela Is Facing Runaway Financial Catastrophe

Venezuela Is Facing Runaway Financial Catastrophe Debt, capital flight, food shortages, and hyperinflation take hold Often, economists want to isolate questions of public debt and analyse these issues as if public choice considerations weren’t at play. Perhaps less studied are the ways in which debt practices can systematically exert pressure on formal political institutions. But if you want to understand what is going on in Venezuela today, you can’t do so without looking at this political-economy nexus. For regular people living in Venezuela, the situation is bleak. As the Economist reports, food queues start at 3 am, with the real…