DOCSLIB.ORG

Bolivia Public Finances, 1882-2007

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Bolivia Public Finances, 1882-2007 Bolivia Public Finances, 1882-2007 Challenges and restrictions of State intervention in a small, multiethnic and revolutíonary economy José Alejandro Peres Cajías ADVERTIMENT. La consulta d’aquesta tesi queda condicionada a l’acceptació de les següents condicions d'ús: La difusió d’aquesta tesi per mitjà del servei TDX (www.tdx.cat) i a través del Dipòsit Digital de la UB (diposit.ub.edu) ha estat autoritzada pels titulars dels drets de propietat intel·lectual únicament per a usos privats emmarcats en activitats d’investigació i docència. No s’autoritza la seva reproducció amb finalitats de lucre ni la seva difusió i posada a disposició des d’un lloc aliè al servei TDX ni al Dipòsit Digital de la UB. No s’autoritza la presentació del seu contingut en una finestra o marc aliè a TDX o al Dipòsit Digital de la UB (framing). Aquesta reserva de drets afecta tant al resum de presentació de la tesi com als seus continguts. En la utilització o cita de parts de la tesi és obligat indicar el nom de la persona autora. ADVERTENCIA. La consulta de esta tesis queda condicionada a la aceptación de las siguientes condiciones de uso: La difusión de esta tesis por medio del servicio TDR (www.tdx.cat) y a través del Repositorio Digital de la UB (diposit.ub.edu) ha sido autorizada por los titulares de los derechos de propiedad intelectual únicamente para usos privados enmarcados en actividades de investigación y docencia. No se autoriza su reproducción con finalidades de lucro ni su difusión y puesta a disposición desde un sitio ajeno al servicio TDR o al Repositorio Digital de la UB. No se autoriza la presentación de su contenido en una ventana o marco ajeno a TDR o al Repositorio Digital de la UB (framing). Esta reserva de derechos afecta tanto al resumen de presentación de la tesis como a sus contenidos. En la utilización o cita de partes de la tesis es obligado indicar el nombre de la persona autora. WARNING. On having consulted this thesis you’re accepting the following use conditions: Spreading this thesis by the TDX (www.tdx.cat) service and by the UB Digital Repository (diposit.ub.edu) has been authorized by the titular of the intellectual property rights only for private uses placed in investigation and teaching activities. Reproduction with lucrative aims is not authorized nor its spreading and availability from a site foreign to the TDX service or to the UB Digital Repository. Introducing its content in a window or frame foreign to the TDX service or to the UB Digital Repository is not authorized (framing). Those rights affect to the presentation summary of the thesis as well as to its contents. In the using or citation of parts of the thesis it’s obliged to indicate the name of the author. ii AGRADECIMIENTOS A lo largo de la elaboración de esta tesis conté con el apoyo, tiempo y recursos necesarios para afrontar un proyecto investigativo que, difícilmente, podría haber sido realizado bajo las condiciones en las cuales opera la investigación académica en Bolivia. Por un lado, fue fundamental el apoyo decidido, continuo e inquebrantable de mi director de tesis, Alfonso Herranz-Loncán. Trabajar con él representó un desafío y un aprendizaje continuo y su figura constituye sin duda un modelo a seguir tanto desde el punto de vista profesional como personal. Por otro lado, fue también crucial el financiamiento otorgado por la Universitat de Barcelona, la Agència de Gestió d'Ajuts Universitaris i de Recerca (AGAUR) de la Generalitat de Catalunya y el Ministerio de Ciencia e Innovación de España. Igualmente, la posibilidad de poder trabajar y discutir mis ideas con Luis Bértola, Gonzalo Chávez, Ewout Frankema, Herbert Klein y Fernanda Wanderley, fue un privilegio y una actividad sumamente enriquecedora. La ilusión y el desafío es poder lograr al menos una mínima parte de lo conseguido por estos investigadores. Fue también fundamental el apoyo, la guía y la amistad de Anna Carreras Marín y Marc Badia Miró. Otro elemento que valoro enormemente y que me permitió crecer profesionalmente fue el apoyo de César Yáñez. El apoyo institucional por parte del Departamento de Historia e Instituciones Económicas de la Universidad de Barcelona es otro de los elementos que me permitió afrontar este proyecto investigativo. En particular el apoyo de Lluis Castañeda Jordi Planas, Ramon Ramon, Alex Sánchez, Enric Tello y Francesc Valls, me brindó la flexibilidad necesaria para poder compaginar mis obligaciones con la universidad y mis objetivos de investigación. Fue también muy importante la ayuda brindada por parte de los investigadores más jóvenes del Departamento, en particular, Sergio Espuelas, Jordi Guilera, Julio Martínez, Marc Prat y Javier San Julián iii La tesis doctoral se nutrió directa e indirectamente de los diversos debates generados tanto en el “Grupo de Historia Económica de América Latina” en Barcelona, como en los de la “Coordinadora de Historia” en La Paz. En particular quiero subrayar el apoyo y las sugerencias de Rossana Barragán, Yolanda Blasco, Magdalena Cajías, Albert Carreras, Mar Rubio y Xavier Tafunell. Fue también sumamente enriquecedor tanto desde el punto de vista académico como personal afrontar este proyecto investigativo con otras personas que lidiaban con problemas y desafíos similares. En Barcelona siempre pude contar con la ayuda y amistad de Santiago Colmenares, Kaloyan Stanev, Vicente Neira y Cristian Ducoing. En Utrecht, a pesar del corto tiempo, fue muy importante contar con Miguel Laborda, Sarah Guilland y Lotte van der Vleutten. Quiero destacar también la importancia de la Summer School de Historia Económica de América Latina celebrada en Montevideo, el evento académico que sin lugar a dudas fue el que más me motivó a lo largo de estos años. En él pude conocer a personas de las cuales aprendí y seguramente seguiré aprendiendo. En particular quiero destacar a Lavih Abraham, Paola Azar, Sebastián Fleitas y Sabrina Siniscalchi. Finalmente, está claro que todo este trabajo hubiera sido mucho más complicado, menos divertido y menos intenso, sin la presencia y ayuda de mis amigos en Barcelona y La Paz, de los Peres Cajías y de Elba. A todos ellos mi mayor agradecimiento. iv LIST OF CONTENTS Introduction……………………………………………………………….xi Administrative Map of Bolivia………………………………………….. 1 Chapter 1. Tracing the reversal of fortune in the Americas. Bolivian GDP per capita since the mid-nineteenth century ...................................3 Bolivian pc GDP between 1890 and 1950: sources and estimation methods..........................................................................................................7 Bolivian income per capita ca. 1846: a guesstimate....................................22 The Bolivian economy since the mid-nineteenth century...........................24 The Bolivian economy and the “reversal of fortune” in the Americas…....32 Conclusions………………………………………………………………..37 Appendix 1. Estimation of the Bolivian agrarian production in 1846.........39 Appendix 2. Estimation of the Bolivian GDP, 1890-1950..........................42 Chapter 2. Bolivian Public Finances, 1882-2007. The challenge to make State intervention sustainable…………………………………………..47 The Bolivian public finance database: definition, sources and estimation methods…………………………………………………………………...49 Bolivian Public Revenues and Expenditures, 1882-2007: some stylized facts……………………………………………………………………….60 Bolivian public spending: Where was it allocated and how was it financed? …………………………………………………………………………….65 A first assessment of Bolivian public finances: a macroeconomic perspective………………………………………………………………...74 Conclusions………………………………………………………………..81 Appendix 1. Sources for the estimation of Bolivian public revenues and expenditures……………………………………………………………….83 Appendix 2. Bolivian public revenues and expenditures, 1882-2007.........88 v Chapter 3. The debate on Bolivian tariffs, 1850s-1930s. Always protectionist, never protected?.................................................................95 Bolivian foreign trade statistics during the First Globalization…………...98 The evolution of the Bolivian average tariff ratio......................................103 Bolivian tariffs from the 1850s to the 1900s: the role of institutional fragility and geography..............................................................................109 Tariffs from the 1900s to the mid 1930s: the role of geographical diversity and railways……………………………………………………………...119 Conclusions………………………………………………………………128 Chapter 4. The expansion of mass education in Bolivia: did the Revolution overcome the colonial legacy?.............................................129 The puzzle: the Bolivian paradoxical equilibrium between low taxation and human capital investment………………………………………………..132 The evolution of public spending in education: was Bolivia a special case in the Latin American context?......................................................................139 Was the distribution of education spending revolutionary?.......................146 Were the educational achievements revolutionary?...................................152 Conclusions………………………………………………………………156 Conclusions……………………………………………………………...159 Bibliography…………………………………………………………….163 vi LIST OF TABLES Chapter 1. T. 1. Sectoral composition of the Bolivian GDP, 1950.................................8 T. 2. Available estimates of the Bolivian population, 1825-1950.................9 T. 3. Sectoral composition of the Bolivian GDP (%), 1846-2008...............26 T. 4. Annual average growth rates of Bolivian GDP and GDP per capita
Load more

Recommended publications
  • 2015 Financials
    CONTENTS ANNUAL REPORT 2015 AND 2014 6 CHAIRMAN’S STATEMENT 9 DESCRIPTION OF THE COMPANY 11 DIRECTORS 12 INVESTMENT PERFORMANCE 17 DESCRIPTION OF MAJOR INVESTMENTS 31 FINANCIAL STATEMENTS 5 MONEDA CHILE FUND LIMITED INVESTMENT FUND CHAIRMAN’S STATEMENT Dear Investors: I would like to report on the results of Moneda Chile Fund in the fiscal year ending December 31, 2015. In 2015, the external setting was again adverse for Latin America: growth continued to shift from emerging countries to developed countries; fears about the Chinese economy were on the rise; there was an excess supply on the oil and other commodities markets; and there was a real possibility of the Fed putting an end to its monetary stimulus. This led to a crash in the prices of the raw materials exported by the region. The region’s economies also faced a decline in important external financial conditions. So, the growth of Latin America in 2015 was estimated to be -0.3%. In Chile, the economy grew 2.1% in 2015, similar to the growth in 2014 (1.9%). The worsening outlook abroad contributed to the slow growth, with a drop in the price of copper from US$3.11/lb in 2014 to US$2.50/lb in 2015. Also adversely impacting were the rise in taxes under the tax reform passed the previous year and the great uncertainty associated with the proposed labor reforms and new constitution. This prolonged the low level of confidence seen in the private sector that prevented a recovery in domestic demand and braked the export effort driven by the strong real devaluation in the peso (14.4%).
    [Show full text]
  • Compañía Cervecerías Unidas S.A. and Subsidiaries
    Compañía Cervecerías Unidas S.A. y subsidiarias (Cifras expresadas en miles de pesos chilenos) COMPAÑÍA CERVECERÍAS UNIDAS S.A. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS (Figures expressed in thousands of Chilean pesos) As of and for the year ended December 31, 2018 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and shareholders of Compañía Cervecerías Unidas S.A. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated statements of financial position of Compañía Cervecerías Unidas S.A. and its subsidiaries (the “Company”) as of December 31, 2018 and 2017, and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2018, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December, 31, 2018 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
    [Show full text]
  • The Monetary and Fiscal History of Bolivia: 1960–2015
    WORKING PAPER · NO. 2018-67 The Monetary and Fiscal History of Bolivia: 1960–2015 Timothy J. Kehoe, Carlos Gustavo Machicado, and José Peres Cajías AUGUST 2018 1126 E. 59th St, Chicago, IL 60637 Main: 773.702.5599 bfi.uchicago.edu Federal Reserve Bank of Minneapolis August 2018 First version: August 2010 The Monetary and Fiscal History of Bolivia, 1960–2015* Timothy J. Kehoe University of Minnesota, Federal Reserve Bank of Minneapolis, and National Bureau of Economic Research Carlos Gustavo Machicado Instituto de Estudios Avanzados en Desarrollo (INESAD) José Peres-Cajías Escuela de la Producción y la Competitividad, Universidad Católica Boliviana “San Pablo” ABSTRACT___________________________________________________________________ After the economic reforms that followed the National Revolution of the 1950s, Bolivia seemed positioned for sustained growth. Indeed, it achieved unprecedented growth during 1960–1977. Mistakes in economic policies, especially the rapid accumulation of debt and a fixed exchange rate policy during the 1970s, led to a debt crisis that began in 1977. From 1977 to 1986, Bolivia lost almost all the gains in GDP per capita that it had achieved since 1960. In 1986, Bolivia started to grow again, interrupted only by the financial crisis of 1998–2002, which was the result of a drop in the availability of external financing. Bolivia has grown since 2002, but government policies since 2006 are reminiscent of the policies of the 1970s that led to the debt crisis, in particular, the accumulation of external debt and the
    [Show full text]
  • Oil Nationalizations in Bolivia and Mexico Established a Period of Tension and Conflict with U.S
    The Oil Nationalizations in Bolivia (1937) and Mexico (1938): a comparative study of asymmetric confrontations with the United States Fidel Pérez Flores IREL/UnB [email protected] Clayton M. Cunha Filho UFC [email protected] 9o Congreso Latinoamericano de Ciencia Política ¿Democracias en Recesión? Montevideo, 26-28 de julio de 2017 2 The Oil Nationalizations in Bolivia (1937) and Mexico (1938): a comparative study of asymmetric confrontations with the United States I. Introduction Between 1937 and 1942, oil nationalizations in Bolivia and Mexico established a period of tension and conflict with U.S. companies and government. While in both cases foreign companies were finally expelled from host countries in what can be seen as a starting point for the purpose of building a national oil industry, a closer look at political processes reveal that the Bolivian government was less successful than the Mexican in maintaining its initial stand in face of the pressure of both the foreign company and the U.S. Government. Why, despite similar contextual conditions, was it more difficult for Bolivian than for Mexican officials to deal with the external pressures to end their respective oil nationalization controversy? The purpose of this study is to explore, in light of the Mexican and Bolivian oil nationalizations of the 1930’s, how important domestic politics is in less developed countries to maintain divergent preferences against more powerful international actors. This paper focuses on the political options of actors from peripheral countries in making room for their own interests in an international system marked by deep asymmetries. We assume that these options are in part the product of processes unfolding inside national political arenas.
    [Show full text]
  • Econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Morales, Juan Antonio Working Paper Bolivian trade and development , 1952 - 1987 Documento de Trabajo, No. 02/88 Provided in Cooperation with: Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana Suggested Citation: Morales, Juan Antonio (1988) : Bolivian trade and development , 1952 - 1987, Documento de Trabajo, No. 02/88, Universidad Católica Boliviana, Instituto de Investigaciones Socio-Económicas (IISEC), La Paz This Version is available at: http://hdl.handle.net/10419/72932 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Documento de Trabajo No. 02/88 Mayo 1988 Bolivian Trade and Development, 1952-1987 by Juan Antonio Morales Bolivian Trade and Development, 1952-1987 by Juan Antonio Morales Universidad Católica Boliviana The most extreme example of the Latin American crisis of the 1980s is given by the Bolivian case.
    [Show full text]
  • Econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Morales, Juan Antonio Working Paper The end of the Bolivian hyperinflation Documento de Trabajo, No. 03/88 Provided in Cooperation with: Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana Suggested Citation: Morales, Juan Antonio (1988) : The end of the Bolivian hyperinflation, Documento de Trabajo, No. 03/88, Universidad Católica Boliviana, Instituto de Investigaciones Socio-Económicas (IISEC), La Paz This Version is available at: http://hdl.handle.net/10419/72876 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Documento de Trabajo No. 03/88 Agosto 1988 The End of the Bolivian Hyperinflation by Juan Antonio Morales The End of the Bolivian Hyperinflation by Juan Antonio Morales Universidad Católica Boliviana I.
    [Show full text]
  • Economic Survey of Latin America and the Caribbean
    2007-2008 Economic Survey of Latin America and the Caribbean Macroeconomic policy and volatility 2007-2008 Economic Survey of Latin America and the Caribbean Macroeconomic policy and volatility Alicia Bárcena Executive Secretary Laura López Secretary of the Commission Osvaldo Kacef Director of the Economic Development Division Diane Frishman Offi cer in Charge Documents and Publications Division www.cepal.org/de The Economic Survey of Latin America and the Caribbean is issued annually by the Economic Development Division of the Economic Commission for Latin America and the Caribbean (ECLAC). This 2007-2008 edition was prepared under the supervision of Osvaldo Kacef, Director of the Division; Jürgen Weller was responsible for its overall coordination. In the preparation of this edition, the Economic Development Division was assisted by the Statistics and Economic Projections Division, the Latin American and Caribbean Institute for Economic and Social Planning (ILPES), the Division of International Trade and Integration, the ECLAC subregional headquarters in Mexico City and Port of Spain and the country offi ces of the Commission in Bogota, Brasilia, Buenos Aires, Montevideo and Washington, D.C. Chapter I, “Regional overview” was prepared by Osvaldo Kacef, with input from Omar Bello, Rodrigo Cárcamo, Filipa Correia, Rodrigo Heresi, Juan Pablo Jiménez, Sandra Manuelito, Alejandro Ramos and Jürgen Weller. The Economic Projections Centre provided data on economic growth prospects in 2008 and 2009. The chapters “Why does real volatility matter
    [Show full text]
  • Conscript Nation: Negotiating Authority and Belonging in the Bolivian Barracks, 1900-1950 by Elizabeth Shesko Department of Hist
    Conscript Nation: Negotiating Authority and Belonging in the Bolivian Barracks, 1900-1950 by Elizabeth Shesko Department of History Duke University Date:_______________________ Approved: ___________________________ John D. French, Supervisor ___________________________ Jocelyn H. Olcott ___________________________ Peter Sigal ___________________________ Orin Starn ___________________________ Dirk Bönker Dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the Department of History in the Graduate School of Duke University 2012 ABSTRACT Conscript Nation: Negotiating Authority and Belonging in the Bolivian Barracks, 1900-1950 by Elizabeth Shesko Department of History Duke University Date:_______________________ Approved: ___________________________ John D. French, Supervisor ___________________________ Jocelyn H. Olcott ___________________________ Peter Sigal ___________________________ Orin Starn ___________________________ Dirk Bönker An abstract of a dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the Department of History in the Graduate School of Duke University 2012 Copyright by Elizabeth Shesko 2012 Abstract This dissertation examines the trajectory of military conscription in Bolivia from Liberals’ imposition of this obligation after coming to power in 1899 to the eve of revolution in 1952. Conscription is an ideal fulcrum for understanding the changing balance between state and society because it was central to their relationship during this period. The lens of military service thus alters our understandings of methods of rule, practices of authority, and ideas about citizenship in and belonging to the Bolivian nation. In eliminating the possibility of purchasing replacements and exemptions for tribute-paying Indians, Liberals brought into the barracks both literate men who were formal citizens and the non-citizens who made up the vast majority of the population.
    [Show full text]
  • THE CREATION and SUSTAINABILITY of AUTONOMOUS OVERSIGHT AGENCIES in a POLITICIZED BUREAUCRACY the Case of Bolivia
    TESI DOCTORAL FRAGILE MIRACLES: THE CREATION AND SUSTAINABILITY OF AUTONOMOUS OVERSIGHT AGENCIES IN A POLITICIZED BUREAUCRACY The case of Bolivia Suzanne Dove Director: Dr. Ricard Gomà Universitat Autònoma de Barcelona Facultat de Ciències Polítiques i de l’Administració 2002 ACKNOWLEDGEMENTS While writing this dissertation, I started doing a lot of bicycling as a way to get out of the house and refresh my brain and my body. A lot of people describe writing a dissertation as an endurance test; I think of it as similar to a long-distance bike ride. There is the long process of finding a topic, which in my case was a difficult uphill battle. The excitement of doing original research in the field is incomparable, but it reminds me a little bit of how much I enjoy exploring new routes on my bike, never sure what I will find ahead. The writing process has its ups and downs, like the rolling hills of the countryside where I enjoy biking. Sometimes I wondered when, or indeed if, I would ever complete this project. The will to finish came from within, but it would not have survived without nourishment from several groups of people in different parts of the world. In Barcelona, where I began this long ride, I received the initial push from my dissertation adviser, Ricard Gomà. Ricard agreed to direct my thesis even though I was not able to tell him exactly what I wanted to study. When I moved to Washington, DC in the early stages of my work, Ricard continued to provide guidance via e-mail, reading the chapters I sent him and providing rapid and supportive responses.
    [Show full text]
  • Could the United States Experience Hyperinflation?
    COULD THE UNITED STATES EXPERIENCE HYPERINFLATION? A question being asked more often these days is “Are we and much of the rest of the world headed for increasing inflation rates and possibly hyperinflation as experienced in recent years by Zimbabwe and in the 1920s in Germany”? The answer is that increasing inflation is an almost certainty considering the rising government expenditures for defense, infrastructure and social services accompanied by an insufficient tax revenue base to pay for these services. The fact that money is no longer backed by material things such as gold has given the central government and especially the Federal Reserve in the United States an almost carte blanche opportunity to create money out of thin air in order to pay for mandated government needs. This trend has been on the increase and has recently reached a dangerous level due mainly to the recent actions by Fed Chairman Ben (“Just print more Dollars and drop them from Helicopters”) Bernanke. His attempts to stimulate a flagging economy with several quantitative easing efforts involving the creation of trillion of un-backed dollars of paper currency have raised the specter of increasing (and possibly uncontrollable) inflation in coming years. To demonstrate the seriousness of this situation, I show you a graph of the United States Adjusted Monetary Base over the past 25 years as reported by the Federal Reserve Bank of St.Louis- Note the sharp jump in the monetary base starting with quantitative easing QE1 and followed by QE2. This increase in dollars floating around the economy here and in the rest of the world needs only the spark of increasing velocity of money exchange to trigger a major inflation period.
    [Show full text]
  • Metadata on the Exchange Rate Statistics
    Metadata on the Exchange rate statistics Last updated 26 February 2021 Afghanistan Capital Kabul Central bank Da Afghanistan Bank Central bank's website http://www.centralbank.gov.af/ Currency Afghani ISO currency code AFN Subunits 100 puls Currency circulation Afghanistan Legacy currency Afghani Legacy currency's ISO currency AFA code Conversion rate 1,000 afghani (old) = 1 afghani (new); with effect from 7 October 2002 Currency history 7 October 2002: Introduction of the new afghani (AFN); conversion rate: 1,000 afghani (old) = 1 afghani (new) IMF membership Since 14 July 1955 Exchange rate arrangement 22 March 1963 - 1973: Pegged to the US dollar according to the IMF 1973 - 1981: Independently floating classification (as of end-April 1981 - 31 December 2001: Pegged to the US dollar 2019) 1 January 2002 - 29 April 2008: Managed floating with no predetermined path for the exchange rate 30 April 2008 - 5 September 2010: Floating (market-determined with more frequent modes of intervention) 6 September 2010 - 31 March 2011: Stabilised arrangement (exchange rate within a narrow band without any political obligation) 1 April 2011 - 4 April 2017: Floating (market-determined with more frequent modes of intervention) 5 April 2017 - 3 May 2018: Crawl-like arrangement (moving central rate with an annual minimum rate of change) Since 4 May 2018: Other managed arrangement Time series BBEX3.A.AFN.EUR.CA.AA.A04 BBEX3.A.AFN.EUR.CA.AB.A04 BBEX3.A.AFN.EUR.CA.AC.A04 BBEX3.A.AFN.USD.CA.AA.A04 BBEX3.A.AFN.USD.CA.AB.A04 BBEX3.A.AFN.USD.CA.AC.A04 BBEX3.M.AFN.EUR.CA.AA.A01
    [Show full text]
  • Hyperinflation in Venezuela: How to Address the Problem
    Hyperinflation in Venezuela: How to Address the Problem Sean Gregory Reilly HMN 679HA/B Special Honors in the Department of Humanities The University of Texas at Austin May 2020 Brian Roberts Department of Government Supervising Professor Kenneth Greene Department of Government Second Reader Abstract Hyperinflation in Venezuela: How to Address the Problem Sean Gregory Reilly, BA in Humanties & Economics The University of Texas at Austin, 2020 Supervisor: Brian Roberts Massive amounts of hyperinflation have been ravaging Venezuela for years. Forbes reported that the annual inflation rate for Venezuela in 2018 was 80,000%. To put this in perspective, an inflation rate this high doubles prices nearly every two weeks. Inflation rates this high haven’t been seen since Zimbabwe in the 2000s and Germany in the 1920s. Venezuela’s high inflation levels are due to the sum total effect of relying too heavily on imports for basic goods, depending on oil as its main export, inefficient government industries, and governmental corruption. While this would have been enough to warrent a thesis on its own, there is more to the story of hyperinflation in Venezuela. Beneath the current economic crisis is a political power struggle. On one side is the current President Nicolas Maduro, head of the United Socialist Party of Venezuela. Challenging him is the interim President of the National Assembly Juan Guaido, from the Popular Will party. To complicate matters further, the United States officially recognized Guaido as the legitimate president of Venezuela. The intersectionality of econoimcs and politics is what intrigued me about Venezuela’s situation. As I started research, I learned that the easiest method for fighting hyperinflation, dollarization, is politically unavailable to President Maduro.
    [Show full text]