Venezuela will hold a denomination of the national currency, but it will not save the economy

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The Venezuelan President announced the denomination of the national currency, the Bolivar. The ratio of 1 to 1000, as in Russia in 1998. The financial crisis in Venezuela is accompanied by hyperinflation, devaluation of the national currency, shortages of goods and medicines, unemployment and protests. According to local authorities, from January 2017 to January 2018, inflation in Kazakhstan has exceeded 4000%. In February the inflation rate has already exceeded the annual value of 6000%.
The official cause of the economic crisis in Venezuela is the decline of oil prices. But you can add more sanctions from the West, Caracas cut off from the international banking system. American commodity monopoly dream free or nearly free to get yourself a Venezuelan field. And, of course, socialism, with all the charisma of Chavez, fundamentally inferior to capitalism as an economic system.
The denomination is a purely technical measure, it is traditionally used in countries that have experienced hyperinflation. However, it has no significant effect on inflation and other macroeconomic indicators. Moreover, according to macroeconomic theory, the denomination is carried out after the victory over inflation, but not during combat. So the denomination Venezuela will not be saved.
Is it possible denomination in Russia? The idea is interesting. The 1:100 ratio suggests itself. In this case, return to penny and the Russian rouble purchasing power similar to the Soviet ruble of the sample in 1984, well, the dollar will be 50-60 cents. However, this is of course a political, not an economic decision.
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Alexander Razuvayev,
The Director of analytical Department,
Alpari