In June 2019, the average price for a cup of coffee in Venezuela was 6,500 bolivars; in

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In June 2019, the average price for a cup of coffee in Venezuela was 6,500 bolivars; in June 2018 the average price was just 8 bolivars. This represents an 81,150% increase in a cup of coffee for Venezuelans, who have seen similarly dramatic increases in the prices of everything they buy. Discuss how this experience impacted the inflation expectations of the average Venezuelan during that time, and how those expectations can impact actual inflation.

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Principles Of Economics

ISBN: 9781319330156,9781319419769

2nd Edition

Authors: Betsey Stevenson, Justin Wolfers

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