Caracas Chronicles

On September 1st this year, Bs.87 would buy you $1 in Cúcuta. Today, those same 87 bolos will buy you 50 cents. That’s a 100% rise in the price of a black market dollar in just over one quarter.

We know it’s bad, but do we know what it means from an economist’s point of view?

Thankfully, we have @Econ_Vzla to tell us.

It means Venezuelans are quickly coming to the conclusion that there’s no worse business than holding bolivars. That only chumps hold bolivars, and if you’re unfortunate enough toget some your best bet is to rush off and trade them for more or less anything. It means the bolivar barely functions as a store of value at all anymore.

It means, in other words, that we better brush up on our Dornbusch. In 2014. It’s embarrassing.