Date: 6 months ago   Category: Economy

Dollars instead of toilet paper. Lessons of economic history - RIA Novosti, 8/26/2018


MOSCOW, 26 Aug — RIA Novosti, Alexander Lesnykh. In the 1990th Russia had to endure a hyperinflation, memories of which still substantially define policy of the Central Bank and Ministry of Finance. Then every month the prices grew on average for 50%. And still not to compare it to what was created and created in some other countries. About the cases of a hyperinflation which have entered all economic textbooks — in material of RIA Novosti. © RIA Novosti / Vladimir Vyatkin Pereyti in an image bank That could be bought for ruble in different epokhiv of the 1960th has resolved the government of Venezuela that oil — to all the head. Those years in the country have found the largest reserves of black gold and instead of developing the industry and agriculture as it was done by neighbors in the South American continent, have transferred economy to oil rails. When in the 2012th the prices of hydrocarbons sharply have gone down, 96% of export and nearly three quarters of income of the Venezuelan budget were the share of oil. In four years black gold has fallen in price twice. It would seem, it was during this time possible to make though something to reduce dependence on import goods and to strengthen economy at the expense of a manufacturing sector. But because of the mass nationalization of the enterprises which is carried out by Hugo Chávez, Venezuela was left by foreign investors, and producers have faded into the background, having preferred to domestic market "gray" export to Colombia. As a result the whole world became the witness of how once safe state spending huge money for the social sphere for several years has appeared among economic outsiders. In the 2017th inflation of the Venezuelan bolivar has made 4000%: for one dollar gave 236 thousand bolivares — in 80 times more, than before oil crisis. At the beginning of August the head of committee on finance of National assembly Raphael Gusman has reported about sharp deterioration in a situation though, appear, and so worse than ever. Gusman has noted that for the first half of the year inflation has reached 10 664%, and the average daily value has exceeded 2,7%. It should be noted that the IMF even considers such data too optimistical: the fund predicts by the end of the year inflation in one million percent. How to find this way out, nobody knows. Affairs are so bad that the government has decided to take absolutely radical measures: to carry out denomination, having cut off five zero on notes and to tie bolivar to national cryptocurrency петро which, in turn, is equated to the cost of barrel of the oil.© extracted in the country RIA Novosti / Alexander Maksimenko Pereyti in an image bank the American experts have predicted "financial chaos" on Ukraineseychas many historians are sure that the Treaty of Versailles which has put an end to World War I was a time bomb: he has led to formation of the Third Reich led by Hitler and the following war — the most bloody in the history of mankind. It is all about reparations which the winner countries have obliged Germany to pay as compensation for the caused damage. Having turned in hands scores, winners declared the sum in 269 is lovely

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