Venezuela Hyperinflation Causes and Solutions

Abstract

Venezuela, a Latin America country, has faced severe economic crisis since 2015. Among various problems, hyperinflation, a rapid excessive and out-of-control price increases, is the most highlighted one. Analysis from diplomacy, economy, social system, policy and development strategy shows detailed problem of Venezuela. It comes out clear that some current policy and strategy of Venezuela is inappropriate and should be adjusted. Solutions from both domestic side and international aspect can drag Venezuela out of hyperinflation. Several important methods are about welfare system, unemployment, resources potential, and international cooperation.There can be risks because the current situation of Venezuela is terrible. But risks followed by chances. With certain mitigations, risks can be transformed in to opportunities. Though hyperinflation and economic crisis are hard to solve, exploiting traditional resource and exploring potential industries can relieve part of these problems.