#econimics

exam time approaching!

So let’s chug down some oat milk coffee and get to work 🥴

Well, to be honest. There will likely be some spreading regardless of how safe we are.

We can do our best to ease into it to keep it to a minimum. The problem is there is no one that is an expert in this. No one has lived through a pandemic like this before.

We need a balance of economic and Medical practices to best handle the situation.

“Venezuela is a country currently under massive sanctions that doesn't have any sophisticated industry, whose economy is based on oil exports, and (the big one) who is currently utilizing a bifurcated currency structure where there is a significant parallel market for the dollar, and the price of the dollar in that market rose.This increased inflation (by increasing the price of imports). The inflation, in turn, drove more people to buy dollars, which pushed the black market price of the dollar up further. If such a spiral is allowed to continue it will eventually lead to hyperinflation. Venezuela could've broke this cycle by unifying the exchange rate, thereby getting rid of (or reducing to irrelevance) the parallel market, but obviously didn't because of mismanagement.”

“Hyperinflation is incredibly rare in developed and economically powerful countries, and we have both the technical know-how and the capability to stop inflation in its tracks. Given that our core inflation right now is at 2.1125%, and both ours and the entirety of our European cohorts' rates have stayed right around the 2% mark, and it's a demonstrable fact that inflation in the 4%-7% range can still maintain strong growth, we have room to wiggle.”

“Venezuela's hyperinflation didn't come out of nowhere and wasn't inevitable, but it's also worth remembering that the United States is operating in a very different econo-political context, and worries of hyperinflation here are completely unfounded, given what we know about our monetary, industrial, and fiscal capabilities.“

David Attenborough