Venezuela

And it is that one first lie that indicated before, the one of the supposed diminution of 3 points in the inflation one falls by the weight of inefficiency and wastefulness. The inflationary pressure that we lived in Venezuela has, in the uncontrolled one and badly oriented expansion of the public cost, one of its reasons of being: On the one hand and as a result of that exaggerated public cost there is an excess of liquidity in the street, is much money circulating, (in serious, they are not laughed, although we have not seen it nor we have benefitted from him is that way, in some place). On the other hand the production of goods and services has been contracted enormously as a result of the bad economic policies and fiscal of this finished government who have meant the closing of innumerable companies and the necessity to concern a great variety of raw material and products that, inevitably, continue being as little as the resources to buy them and that in addition must be sold to international prices skipping, in many cases, little the effective control of prices imposed does already but of three years that for the unique thing that in truth have served it has been to still more strangle the productive and commercial apparatus of the country. It hurts to him to who hurts the market to him is implacable, a contraction of this nature and of this magnitude in the supply it implies that the consumers find less goods offered and, the few that find, to a greater price then, although there is " more money in calle" everything is more expensive One assumes that for being the IVA a tax that is accumulated throughout the productive chain and of commercialization, is moved the intermediate amounts of the successive tax to " eslabones" of this chain like component of the cost and therefore, logically, if throughout that chain the reduction is verified this would have also to be reflected in the final price that receives to the consumer but The Central bank of Venezuela says to us that? ndice of Prices to the Consumer increased to the closing of second semester 1.8% So Did not eat the inflation the reduction of 2 points in the IVA? Now everything is more cheap? Insisto: No, it is not it, the truth is that everything continues costing the same, simply that the government is going to put the hand in our pockets with just a little bit more of gentleness.