22 Hrs
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الاقتصادية
Venezuela's dollarization proposal
Steve Hanke, a professor of applied economics and "money doctor," suggests that Venezuela fully adopt the U.S. dollar as a solution to its debilitating 400% inflation problem. He emphasizes that shifting to the dollar will curb inflation, restore financial stability, and help attract foreign investment, especially in the oil sector which the country relies heavily on. He anticipates that this move will lead to a reduction in prices, increased borrowing, and the return of economic growth expected to begin next year after the bolívar's value has significantly deteriorated—having fallen by 78% against the dollar over the past year. This step is considered essential to address Venezuela’s $250 billion debt and to overcome the effects of hyperinflation.
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