"Anchoring the currency to the dollar and thus outsourcing monetary policy to the U.S. Federal Reserve had been a success, but special interests and politicians could not bear that it robbed them of power. Venezuela is another place where the politicians see no reason why the state's appetite for grabbing private-sector wealth should be constrained. Maintaining price stability ought to be a no-brainer because the government has oil revenues earned in dollars to back up the local currency. But the bolivar is now in free fall." Read more.
Mary Anastasia O'Grady
Wall Street Journal, May 17, 2010.