Hyperinflation

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to Bloomberg, a cup of coffee cost 450 bolivars in Venezuela less than two years ago. Now, as the nation’s hyperinflation continues to skyrocket, a cafe con leche costs 1 million bolivars — or a mere 29 U.S. cents.

Questions:
1. What is the most common note in circulation in Venezuela?
2. Venezuela has vast oil reserves, but why is there starvation and economic devastation in the country?
3. What is the current yearly inflation rate in Venezuela now?

Source:

Kight, S. (2018). It’s nearly impossible to afford a cup of coffee in Venezuela. Axios, June 28 (Retrievable online at https://www.axios.com/venezuela-hyperinflation-economic-crisis-coffee-cash-3c78a2e4-5d2f-4b91-b774-1dfbcf3c4cfd.html)