SAE./No.62/September 2016 Studies in Applied Economics ISSUES IN VENEZUELAN MONETARY AND ECONOMIC REFORM María Belén Wu Johns Hopkins Institute for Applied Economics, Global Health, and Study of Business Enterprise Issues in Venezuelan Monetary and Economic Reform By María Belén Wu Copyright 2016 by María Belén Wu. This work may be reproduced or adapted provided that no fee is charged and the original source is properly credited. About the Series The Studies in Applied Economics series is under the general direction of Professor Steve H. Hanke, Co-Director of the Institute for Applied Economics, Global Health and the Study of Business Enterprise (
[email protected]). The authors are mainly students at The Johns Hopkins University in Baltimore. Some performed their work as research assistants at the Institute. About the Author María Belén Wu is a junior at Johns Hopkins University double majoring in International Studies and Economics. She wrote this paper during her time as an undergraduate researcher for the Institute of Applied Economics, Global Health, and Study of Business Enterprise. María Belén is a BA/MA candidate with the Johns Hopkins School of Advanced International Studies and will graduate in 2019 with an MA in China Studies and International Finance. Abstract This paper analyzes the historical background and current conditions relating to Venezuela’s economic crisis, focusing on its monetary and financial aspects. It aims to assist in making recommendations for appropriate monetary reforms, such as the establishment of an orthodox currency board or official dollarization. The paper addresses critical questions concerning such monetary reforms, as well as complementary economic reforms that would improve Venezuela’s troubled economy in the near future.