Growing Problems

We continue to be concerned about the macroeconomic story in Venezuela. Inflation is beginning to get out of hand, government spending is excessive, and, most worryingly, the price of oil - the backbone of the export sector - is beginning to fall. True, over the past few years, Venezuela has had one of the world's fastest growing economies, and in the short-term, the country's hard-currency reserve buildup has made it capable of weathering external storms. However, the closer we look at the long-term sustainability of the Hugo Chavez government's macroeconomic regime, the more concerned we become. The oil windfall enjoyed

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