Economics
Venezuelan Money Supply Is Surging at the Fastest Pace on Record
- M2 money supply increased 31% in the week through Jan. 25
- Points to worsening inflation and an even weaker currency
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Venezuelan money supply rose 31 percent in the week through Jan. 25, according to central bank data. That’s the fastest expansion since at least 1997 and could indicate that a panicked government has boosted spending in the face of protests, sanctions and the withdrawal of recognition by a big chunk of the international community.
Money-printing has been the driver behind Venezuela’s hyperinflation and the collapse of its currency. On this evidence, the recent strength in the black-market bolivar is illusory.