Search

The Venezuelan economy shows a downward and sustained trend in per capita income. Getting a better understanding of the causes that originate such dynamics is the objective of this research. Thus, the critical determinants are decanted, the role of oil production, the reprimarization of the economy, the relationship between inflation, real wages, the real exchange rate, the interest rate and productivity within the limits of economic growth. Based on these results, the dilemmas of macroeconomic policy are identified. Likewise, some suggestions are proposed to specify a virtuous-cumulative and lasting development process. [ABSTRACT FROM AUTHOR]

The study has the goal of constructing an indicator and regions that allow to reveal early warning in relation to fiscal sustainability. For the achievement of the objective, the analysis part of the budget equation of the Government and, through the use of mathematic telescopic series properties, is built an indicator with rates of interest and economic growth that are variables over time, which makes it more general compared with those existing in the literature. In addition, in this work, for the first time, it manages to build sustainability regions which represent necessary and sufficient conditions for the analysis of the problem of debt over time. [ABSTRACT FROM AUTHOR]