For over ten years, Venezuela has been plagued with a deep economic and political crisis that has also recently transpired into a humanitarian issue. In the past five years, GDP has gone down over 50% and hyperinflation is forecasted by the IMF to reach over 1,000,000% for this year, 2018. The economic downfall has also led to shortages in food, medical supplies, and other commodities nationwide.
In their latest research paper: “Fool’s Gold: On the Impact of Venezuelan Devaluations in Multinational Stock Prices” Miguel Angel Santos, Dany Bahar, and Carlos Alberto Molina analyze how multinational companies with subsidiaries in Venezuela have been impacted by currency devaluations as the economic crisis worsened.
On today's Growth Lab podcast, Camila Lobo interviews one of the co-authors of this research paper, Miguel Angel Santos, who provides insight on the current economic crisis in Venezuela and what motivated them to delve into this research.