Venezuela: Why 2018 Will Be a Painful Year

The economic problems that have plagued Venezuela for years will intensify in 2018. Food shortages -- exacerbated by the collapse in oil revenue in 2014 -- are rampant, fueling runaway inflation in turn. The Venezuelan government has steadily introduced larger denomination bills since 2016 to counter the trend, but inflation continues to accelerate. Even with 10,000- and 20,000-bolivar bills now making up a third of all bills in circulation, currency shortages abound. The government continues to expand the country's monetary base, but it lacks the foreign reserves to print enough bills abroad to satisfy demand for cash at home. In practical terms, that means Venezuelans are often left without enough money to conduct day-to-day transactions, let alone survive....