Saturday, January 9, 2010

Devaluation in Venezuela

The Chavez´s administration has decided to devalue its currency in respond to the current economic situation. This is, in many ways, good news for the country and reveals:

a. That the government is willing to implement unpopular measures--even if later than expected.
b. That the non-oil economy could begin growing for now on.

However, it may also demonstrate the difficulties that Venezuela may have to maintain its macro-policy in the future. Could that result in changes in the country and the region?

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