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Money supply is endogenous and the Venezuelan hyperinflation is a monetary phenomenon

Author

Listed:
  • Juan Barredo-Zuriarrain

    (UPV / EHU - Universidad del País Vasco [Espainia] / Euskal Herriko Unibertsitatea [España] = University of the Basque Country [Spain] = Université du pays basque [Espagne], CREG - Centre de recherche en économie de Grenoble - UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

Abstract

During the last years, Venezuela has experimented both a deep economic crisis and hyperinflation. The US economic blockade and the internal economic crisis has played a main role in the sharp fall of the output levels. But regarding hyperinflation, it must be analyzed as the result of the expansionary policies adopted by the government and the Central Bank in a context of currency overvaluation. In this research, I show the mechanisms that enabled this hyperinflation, which continues today, and explain how the approach to the Venezuelan hyperinflation as a 'monetary phenomenon' is fully consistent with the hypothesis of the endogenous supply of money.

Suggested Citation

  • Juan Barredo-Zuriarrain, 2019. "Money supply is endogenous and the Venezuelan hyperinflation is a monetary phenomenon," Post-Print halshs-03131095, HAL.
    • Handle: RePEc:hal:journl:halshs-03131095
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03131095v1
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    References listed on IDEAS

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    Keywords

    economic growth; hyperinflation; endogenous money; money supply; Venezuela;
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