Ruling-party politics will likely determine whether the recovery continues or collapses.
Pragmatic adjustments have abated Venezuela’s collapse, but the bigger picture remains a bleak one.
Hugo Chávez engineered an electoral budget boom on steroids to win the 2012 presidential election. His economic strategy resulted in a significant appreciation of the real exchange rate, an increase in imports to a historical peak, and a considerable increase in public wages. Facing a strong contender in Henrique Capriles—and the limits to his campaign … Read more