An analysis of the economic crisis in Venezuela from the postulates of the Austrian School of Economics

Abstract

economic crisis of Venezuela from the perspective of the Austrian School of Economics, which provides an analytical tool of great value to understand the consequences of fiscal and monetary interventionism and has long posed the impossibility of organizing Centralized way the economy. The current situation in Venezuela makes it necessary to study the causes that have generated the deep political, economic and social crisis, which will analyze the productive structure, monetary policy, the setting of maximum prices, exchange control and external indebtedness. Objective. Explain the effects of the economic policy that the successive governments of Venezuela have developed to detect the causes of the current economic crisis and propose reform proposals that allow the situation to be reversed as much as possible. Materials and methods. It is based on the study of primary sources such as the macroeconomic information of different research centers and the analysis of the most relevant academic articles and books. Results Real socialism collapsed in Eastern Europe and Asia due to the lack of productivity of the system and the Austrian School of Economics warned in the interwar years of the unsustainability of this model from a theoretical perspective. Conclusions Our analysis shows that the Socialism of the 21st century, of which Venezuela is the maximum exponent, walks in the same direction and that the free market is the only way to economic prosperity.