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Please join CID in welcoming Professor Jose Manuel Puente on a
lively discussion of Venezuela's oil economy and his new
book. Refreshments will be served. José Manuel Puente is Associate professor and
coordinator of the Public Policy Centre at the Instituto de
Estudios Superiores de Administración (IESA) in Caracas. He is an
economist with a MSc from The London School of Economics, a MSc and
a Ph.D. from the University of Oxford. His main areas of academic
interest are Political Economy, Venezuelan Economy, Public Finances
and Budgeting. His latest work discussed tonight
is “Venezuela: The Paradoxes of an Oil Economy (Brooking
Institute, Washington D.C., 2011).
Venezuela: The Paradoxes of an Oil Economy…
In the case of Venezuela, highly incoherent economic policies—characterized by a very inflexible foreign exchange policy that generated a strong appreciation of the exchange rate (creating an import boom and the destruction of the economy’s tradable sector); a highly pro-cyclical fiscal policy; an environment of hyper-regulation (with price, exchange rate and interest rate controls, among others); and systematic expropriations and nationalizations—caused a contraction in the productive system in 2009 and 2010. Nevertheless, in 2011 an oil boom—with average prices of $101.60 per barrel and a oil export income of more than $89 billion— combined with the fact that 2012 is a electoral year, have contributed to a change in the direction of fiscal and monetary policy.