Wednesday, July 23, 2008

Haggle To Fight Inflation

Venezuela's government has started to call on people to haggle more in order to bring down inflation (Hat tip Greg Mankiw), which has risen in Venezuela to 32.2%. Of course, this is better (as it at least do not create much more problems) than the Chavez regime's other method of legal price controls, but ultimately it won't solve the problem. To solve the problem, Chavez would have to reduce money creation, but it seems unlikely that they would want do that, as that would imply reduced government revenue.

Haggling was by the way explained in this scene from history's funniest movie, Monthy Python's Life of Brian.


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