INFLATION

Inflation is the loss of the purchasing power of money, which results in a general and lasting increase in prices.

Currency being the standard of values, the variation of its own value is not directly measurable; it is measured by changes in consumer prices of goods and services, measured at equal quantity and quality.

Inflation must therefore be distinguished from the increase in the cost of living because it does not take into account the variation in quantities purchased in response to price developments.

In July 2018 we need wheelbarrows to be able to shop in Caracas.

With inflation reaching 82,700%, Venezuela is going through a very serious economic crisis, marked by the collapse of the value of its currency, the bolivar.

A pack of rice of one kilo is now worth 2.5 million bolivars.

WAT $ does not pretend to remove all the causes of inflation, some of which may be beneficial.

The stability of its value and the regulation of the emission of WAT $ by the FMU avoids the creation of excessive money which according to Friedman is at the origin of one of the causes of price increase.