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The Monetary and Fiscal History of Venezuela 1960-2016

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  • Diego Restuccia

Abstract

I document the salient features of monetary and fiscal outcomes for the Venezuelan economy during the 1960 to 2016 period. Using the consolidated government-budget accounting framework of Chapter 2, I assess the importance of fiscal balance, seigniorage, and growth in accounting for the evolution of debt ratios. I find that extraordinary transfers, mostly associated with unprofitable public enterprises, and not central-government primary deficits, account for the increase in financing needs in recent decades. Seigniorage has been a consistent source of financing of deficits and transfers, especially in the last decade, with increases in debt ratios being important in some periods.

Suggested Citation

  • Diego Restuccia, 2018. "The Monetary and Fiscal History of Venezuela 1960-2016," Working Papers tecipa-614, University of Toronto, Department of Economics.
    • Handle: RePEc:tor:tecipa:tecipa-614
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    References listed on IDEAS

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    4. Inklaar, Robert & de Jong, Harmen & Bolt, Jutta & van Zanden, Jan, 2018. "Rebasing 'Maddison': new income comparisons and the shape of long-run economic development," GGDC Research Memorandum GD-174, Groningen Growth and Development Centre, University of Groningen.
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    Cited by:

    1. Giovanni B. Pittaluga & Elena Seghezza & Pierluigi Morelli, 2021. "The political economy of hyperinflation in Venezuela," Public Choice, Springer, vol. 186(3), pages 337-350, March.
    2. Su, Chi-Wei & Khan, Khalid & Tao, Ran & Umar, Muhammad, 2020. "A review of resource curse burden on inflation in Venezuela," Energy, Elsevier, vol. 204(C).
    3. Balza, Lenin H. & Diaz, Lina M. & Gomez-Parra, Nicolas & Manzano M., Osmel E., 2023. "The unwritten license: The societal SLO in Latin America’s extractive sector," Ecological Economics, Elsevier, vol. 213(C).

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    More about this item

    Keywords

    monetary; fiscal; policy; inflation; debt; growth; oil; Venezuela.;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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