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Economics

No Senator Warren, Businessmen do not Cause Inflation

Warren’s economic ideas are closer to Chavismo than to standard economic thinking.

If you have been to a supermarket during the last year, you should have noticed that our economy is experiencing a rise in its inflation rate. In the last year, consumer prices have rose by 6.8 percent.

An Economic Cure for Populism

Next month, I will be giving my first in-person lecture since the pandemic. At Maastricht University’s Law School, I will be talking about the interrelation of economic development and political stability. 

Dear readers,

Federal Reserve is concerned with U.S. inflation rate.

“Chairman Powell is right; the Fed has to be cautious with the country’s inflation rate. High levels of inflation would harm middle-class Americans the most, which is the reason the Fed should have this under control.”

This week, the Labor Department said that the U.S. consumer-price index had increased by 5.4 percent from June 2020 to June 2021, the highest 12-month rate since August 2018. 

The COVID-19 Crisis and the Consumer Price Index in Spain

In this week’s column, Jorge Jraissati studies the relationship between the COVID-19 crisis and the consumer price index in Spain. Jorge has been hearing anecdotes about price increases in Spain, which contradicts the macroeconomic indicators of the country.

Venezuela will Deepen its Implicit Dollarization in 2021

In the middle of the biggest economic collapse of any nation in modern times, Venezuela is experiencing a fundamental, and perhaps irreversible, change within its economic system. Since 2019, Venezuela has been driving full throttle towards an economic phenomenon, which I refer to as implicit dollarization.

A Note on Development

The main constraint for growth in Venezuela is not related to market failures nor any purely economic issue, but to the political institutions of the country. As a result, Venezuela exemplifies that the economic issues of most nations are a result of their bad governance.

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