The ticket of 500 bolivianos – Pagina Siete Journal

I welcome the ticket of 500 bolivianos because now I can bring to market two 500 notes instead of 10 100. The big bucks are for that, so that the wallet is not bulge and are not a fatal signal that the hideous head of hyperinflation is next in economic billboard. The bad reviews about this new cut of the national currency sound to me like gossip, not serious economic analysis.

As long as GDP grows an equally growing mass of money is needed to buy it and if something has grown in recent years is the nominal GDP, one that incorporates the price increase, plus the effective growth of the production of goods and services. Prices do not stop growing and while their increase is not exaggerated the economy is in good health.

Last year cumulative inflation failed or 3%. By the way, measured by the CPI growth, which reflects the average increase in prices of 364 products including a fixed basket from food to electronic equipment, technically established by the INE.

The feeling that everything has gone up in the markets of fruits and vegetables is real, no doubt, but it is a perception accumulated over several years increase, which is not necessarily accompanied by equivalent increases wage. Therefore, it is essential to put into circulation banknotes to facilitate purchases.

To follow badmouthing Billet 500 bolivianos, it has also made a comparison of a measure that would take the European Central Bank. It is said that this institution will withdraw the 500 euro note because it facilitates criminal actions of all kinds. That makes it easier, I do not doubt, is less bulky carry 100 500 euro to bring 500 pieces of 100. This condition Shuttle airline ticket facilitated by a higher court is evident. What should not lead to the conclusion that the withdrawal of circulation of 500 euros, drug trafficking, money laundering, trafficking in women, terrorism and other kinds of crimes that cross borders will stop and less eradicated. Now international criminals will have to devise other ways to pay for their misdeeds.

Certainly, however, I am sure will not be the ticket of 500 bolivianos to take the place of euro 500 in the hustles of the wrongdoers.

Consequently, Bolivians can rest easy with the ticket 500. No inflation nor bring it presages it. It can be used by criminals, true, but I’m sure you prefer to continue using $ 100 bills, which is roughly equivalent to 700 bolivianos or 100 euros, which come to mean almost 1,000 bolivianos.

Now, if about money laundering, the problem is no longer bulky bundles of money. Here is the use of tax havens that have protection, still, the states in which lies.

The truth is that the welcome we must give the ticket 500 bolivianos and stop badmouth a cut that still not we know it.

Alberto Bonadona Cossio is an economist.