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It’s time to apply what you are learning to understanding real world events. You have two options: 1) you can use the assignment below or 2) you can pick an article on a topic we’ve discussed in class. If you choose option 2, please email me to ok the topic and article you choose.

For option 1) The following article considers the economic situation in Venezuela and I’ve provided the article I want you to write about as well as a bit of background reading. For this assignment you are to read this article on Venezuela, answer the following questions, and explain the economic significance of this article. In 2-3 pages (space and a half) you should:

  • briefly summarize the article
  • explain the economic issues in the article- what topics are addressed and what do they mean in terms of the article (i.e. what do the changes in this article represent in terms of the market)
    • hyperinflation (what is it, what does it mean for individuals and the country as a whole)
    • what does it mean to “hedge” against inflation and what are Venezuelans doing?
    • why might inflation affect the rich differently than the poor (use examples from the article to illustrate)
  • explain what impact you think this might have on the country in terms of its economic future- explain your answer.
  • do you have any ideas about how the country could protect people against inflation

2-3 pages

article to read for assignment: What Venezuelan savers can teach everyone else

background reading:

Venezuela’s Hyperinflation, 24 months and counting (Links to an external site.)Links to an external site.

Venezuelan inflation reaches 40,000 percent (Links to an external site.)Links to an external site.

A cup of coffee costs a million Venezuelan bollivars! (Links to an external site.)Links to an external site.

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