Posts Tagged ‘Venezuela’

  • Venezuela Map

    Income Redistribution: The Venezuelan Economy

    Mar 8, 13 • 315 Views • No Comments

    The Venezuelan economy in 3 pictures: Observed during October, 2010, the sign shows that there is a price ceiling for Diana Oil. At 4,73 bolivars, the ceiling is 32% less than 7 bolivars, its “capitalist price.” As always, price ceilings lead to...  [read more]

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    Venezuela’s Price Controls

    Apr 22, 12 • 440 Views • No Comments

    Reading that a Venezuelan retiree did not mind the food lines, I started thinking about how President Chavez’s price controls have changed incentives. The retiree, who has more time than money, now has the incentive to stand in line. Meanwhile, a...  [read more]

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    Venezuela’s Economic Problems

    Jul 20, 11 • 568 Views • No Comments

    Venezuela has 2 basic economic problems: The law of supply: Because price and quantity move in the same direction, if price goes down, then producers provide less. This takes us to Venezuela’s 27.1% inflation rate. President Hugo Chavez responded by...  [read more]

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    Venezuela’s Prices

    Nov 10, 10 • 243 Views • No Comments

    You might find it interesting to ponder the implications of the sign in a Venezuelan shopping mall which I saw on Harvard’s N. Gregory Mankiw’s blog. Called Mercado Bicentenario, the store was a part of a chain that had recently been nationalized...  [read more]