Bolivia in Panic

Rayla H. Taylor T.

Background Information

Inflation is the fall of value of a currency, usually due to federal debt, and or the over production of the representation of reserve.

In the early 1900's, south america was in the spotlight, and because of reasons still debated, the economy of Bolivia was in a steady decline. this set off a chain reaction, frightened investors forsook their shares in Bolivian companies and corporations.

Bolivian Government

Bolivia's Government is full of failures. From the early colonization, to modern day rule, dictators, presidents, and monarchs, have all fallen in the brief 183 years of independence.

In 1986, president Gonzales Bonzer took action to pay the large workforce of the companies who lost their business. Unfortunately, they could not account for the massive amounts of money they would have to dole out.

The Crisis of 1980

Bolivia is the second poorest nation in South America with a per capita rate of $500.

The GNP of Bolivia is 2.4%.

In 1984, the mines that protected and guided the Bolivian Stock Market were flooded with water.

In 1976, the Rain forests of Bolivia, as well as the mountains were protected, and government resource development was banned.

Bolivian Currency dropped by 170000%, a total of $1000000 value. It got to a point that Bolivians started trading supplies and products as currency, reverting back to their values before the Crisis.