If I had to point only one precipitous failure of the Chávez administration, it would certainly be its inability to maintain the currency's purchasing power. The Venezuelan Central Bank reported last Friday November's NCPI (National Consumer Price Index), which at 2.3%. During 2008 prices in Bolívares Fuertes (Strong Bolivares), the new currency introduced in January have increased 27.6% and in Caracas Metropolitan Area, the year-over-year increase has been 32.7%.

The culprit of all this is none other than our own Central Bank, which has increased money supply by more than 28% YoY; driven by the desire to support Chávez' expansionary fiscal policy, which supposedly is all in the benefit of the impoverished masses. Experience, however has shown time and again that the impoverished masses are the most affected by inflation.

In Venezuela, the impoverished masses have Chávez and the Central Bank to blame for being en route to become poorer, nearly 30% poorer in money terms by the end of the year.

 Venezuela, Economics