The IMF made a mistake with Venezuelan inflation of 9 million percentage points

The International Monetary Fund (IMF) corrected its estimates on cumulative inflation in Venezuela by the end of 2019 and, after claiming it would be 10,000,000 percent, now indicates that it will be less than one million percent . Nothing more and nothing less than a difference of 9 million percentage points.

The huge margin of error between the two figures calculated by the international organization, responsible for the application of strict austerity plans to the member countries, raises serious doubts about the professionalism, the methods and the economic, monetary and taxes used to subject nations to serious regimes of strong social impacts, especially in the poorest sectors.

In the projections for Venezuela, published in its annual report, the agency now rejects its inflationary calculation of 10,000,000%, scheduled for the end of this year. The new estimate provided by the US-controlled multilateral is less than 1,000,000%, a level that, he concludes, responds to the slowdown in inflation that the country has been showing since February.

"The Venezuelan economy continues to suffer from hyperinflation, but the monthly inflation has decreased significantly due to the measures that the Central Bank of Venezuela (BCV) has implemented to increase reserve requirements, also due to some operations in the foreign exchange market, as Sincerely, we see a significantly lower inflation than the 10,000,000% estimate, we are probably seeing for the year 2019 an annual inflation lower than 1,000 .000%, "said Alejandro Werner, director of the IMF for the Western hemisphere.

To this miscalculation it would suffice to add that a study by the General Accounting Office of the United States (GAO in English, Office of Government Responsibility), quoted by the Argentine newspaper Page12, notes that the IMF was able to anticipate 11 percent of global economic crises in the period 1991-2001. On the basis of these data, in the case of Latin America, no one was right. For example, the IMF had predicted that Argentina would grow by 3.7 percent in 2001, when the contraction was finally 4.4. More recently, the IMF in mid-2007, months before the arrival of the great global financial crisis, had stated that "there was no reason to worry about the world economy".