What Happened: An economist with the International Monetary Fund said the inflation rate for Venezuela's economy will reach 1,000,000 percent in 2018, Reuters reported July 23.
Why It Matters: Venezuela's skyrocketing inflation will prompt the government to clamp down even tighter and could potentially lead to internal fissures or even an overthrow.
Background: Venezuela's economy has been in a free fall since the oil price slump. Declining oil production and the policies of President Nicolas Maduro's government have helped intensify the decline.
- Venezuela's Election Is a Foregone Conclusion. But What About the U.S. Response? (May 20, 2018)
- U.S. Negotiations With Venezuela: A Choice Between Bad and Worse (April 6, 2018)
- Latin America's Burning Question: What to Do About Venezuela? (April 2, 2018)
- A $2 Billion Ruling Adds to Venezuela's Woes (May 14, 2018)