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Venezuela's Inflation: Up, Up, and Away

Like the 2009 Oscar award-winning Pixar film Up, Venezuela's annual inflation rate has soared sky high (see the attached chart). On December 31, 2014, Venezuela's bolivar traded at a VEF/USD rate of 171 and the implied annual inflation rate stood at 169%.
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Professor of Applied Economics at The Johns Hopkins University in Baltimore

Professor of Applied Economics at The Johns Hopkins University in Baltimore
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Like the 2009 Oscar award-winning Pixar film Up, Venezuela's annual inflation rate has soared sky high (see the attached chart). On December 31, 2014, Venezuela's bolivar traded at a VEF/USD rate of 171 and the implied annual inflation rate stood at 169%. In May of 2015, Venezuela's bolivar collapsed and the implied annual inflation rate broke the 500% barrier. On May 28, 2015, the VEF/USD rate was 413, a 59% depreciation in the bolivar since January 1st. Not surprisingly, the implied annual inflation rate stood at a staggering 495%.

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