Just to complement this whole idea. The economic crisis in Venezuela was setup when the currency got their prices fixed. Essentially making exchanging currencies illegal without government approval. This threw our economy into disarray and made us 100% dependent on oil sales, as it was the only consistent influx of dollars. When the global prices of oil crashed in 2014, they pulled the currency exchange prices with them, we got the highest inflation in history ever and our economy collapsed. In response, the government fixed prices of everything, specially food, not just the currency. The result was an even worse crisis, death and hunger.
The whole thing has been somewhat stabilized by now by, as you would guess, liberating the prices and letting the economy behave normally again.
Just to complement this whole idea. The economic crisis in Venezuela was setup when the currency got their prices fixed. Essentially making exchanging currencies illegal without government approval. This threw our economy into disarray and made us 100% dependent on oil sales, as it was the only consistent influx of dollars. When the global prices of oil crashed in 2014, they pulled the currency exchange prices with them, we got the highest inflation in history ever and our economy collapsed. In response, the government fixed prices of everything, specially food, not just the currency. The result was an even worse crisis, death and hunger.
The whole thing has been somewhat stabilized by now by, as you would guess, liberating the prices and letting the economy behave normally again.