The recent rally in Venezuelan government bonds, on the back of speculation that the deteriorating health of President Hugo Chávez will lead to a shift towards more market friendly policies, stands in sharp contrast to the fall in the black market value of the currency. We suspect that the bond markets are being too sanguine on the prospects for reforms. Even if there is a change in government, the economy is suffering from deep-seated problems and any transition is unlikely to be smooth.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services