Michael Holmes and Geoff Naylor respond to a Guardian article by Larry ElliottLarry Elliott is right to say that “the left had its chance and blew it” after the economic crash, and right to identify the left’s lack of a clear and united narrative as one of the main reasons for this (Opinion, 30 August). Instead, the different strands of the left “all headed off in their own directions”, as Elliott says. It is worth exploring this in a little more detail and picking out two key problems.One of the biggest obstacles to developing a common left framework was the fact that during the crisis, social democratic parties throughout Europe kept on going into right-led coalitions which were implementing cuts and austerity programmes. The subsequent collapses of the social democratic parties in Ireland, the Netherlands, France, Germany and other countries all bear witness to this. Continue reading...

Canadians feel stabbed in the back by Mexico after it agreed a separate trade deal with TrumpIt is a threat that has loomed since Donald Trump took power, bursting into view each time the US president attacks Canada’s trade policies. But this week Canadians have been forced to confront the possibility of a breakdown in trade relations with their closest ally and biggest trading partner, after the US president announced a preliminary deal with Mexico.The news left Canadians reeling and sent the country’s foreign minister rushing to Washington DC in the hope of salvaging the decades-old North American Free Trade Agreement (Nafta) – a three-way deal between the US, Canada and Mexico. The stakes for Canada are sky-high; the country sends three quarters of its exports south of the border while roughly 2.5m Canadian jobs depend on US trade.There are no poison pills left — only bitter ones for Canada to swallowRelated: Nafta: what is it and why is Trump trying to renegotiate? Continue reading...

While regulation has been strengthened since the crisis, its implementation remains patchyAs the 10th anniversary of the start of the global financial crisis approaches, a wave of retrospective reviews is bearing down on us. Many of them will try to answer the big question: has the financial system been fundamentally reformed, so that we can be confident of preventing a repeat of the dismal and destructive events of 2008-09, or has the crisis been allowed to go to waste?There will be no consensus answer to that question. Some will argue that the post-crisis reforms, especially those concerning banks’ capital requirements, have gone too far, and that the costs in terms of output have been too high. Others will argue that far more must be done, that banks need far higher capital, and possibly, as the proponents of a recent Swiss referendum argued, that banks should lose their ability to create money.Related: Weak economic recovery was down to flawed policies, not secular stagnation | Joseph Stiglitz Continue reading...

Costly banknote recall did not flush out untaxed wealth, as PM Narendra Modi had promisedMore than 99% of the currency that India declared void in a surprise announcement in 2016 was returned to the country’s banks in subsequent weeks, according to a Reserve Bank of India (RBI) report.The figures suggest prime minister Narendra Modi’s demonetisation policy, which likely wiped at least 1% from the country’s GDP and cost at least 1.5m jobs, failed to wipe significant hordes of unaccounted wealth from the Indian economy — a key rationale for the move.Related: India's banknote ban: how Modi botched the policy yet kept his political capitalRelated: India's small businesses facing 'apocalypse' amid biggest financial experiment in historyRelated: India's slowing growth blamed on 'big mistake' of demonetisation Continue reading...

Trade body calls for ‘political and economic clarity’ after sharp reduction in UK demandThe number of cars built in UK factories slumped by 11% last month compared with a year ago.Just over 121,000 cars left production lines, with a fall of 35% in models built for the UK, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). Car production for export in July fell by 4.2%.Related: Aston Martin unveils London Stock Exchange flotation Continue reading...

Capitalism’s near-death experience with the banking crisis was a golden opportunity for progressives. But they blew itPlacards are being prepared. Photo-opportunities are being organised. A list of demands is being drawn up by a coalition of pressure groups, unions and NGOs. Yes, preparations are well under way for protests to mark next month’s 10th anniversary of the collapse of Lehman Brothers – the pivotal moment in the global financial crisis.Make no mistake, the fact that events will take place in all the world’s financial centres is no cause for celebration. On the contrary, it is a sign of failure. The banks were never broken up. Plans for a financial transactions tax are gathering dust. Politicians toyed with the idea of a green new deal and then promptly forgot about it. There never was a huge swing of the pendulum away from the prevailing orthodoxy, just a brief nudge that was quickly reversed. The brutal fact is that the left had its chance, and it blew it.Related: Labour condemns 'sickening' Lehman Brothers reunion partyThe process of challenging business as usual lacked a unifying analysis of what had caused the crisisRelated: The Lehman Brothers party is a red herring – it’s the system that stinks | Stefan Stern Continue reading...

President Mauricio Macri says ‘lack of trust from the markets’ forces him to ask for help as peso weakens and inflation runs at 30%Argentina’s President Mauricio Macri has asked the International Monetary Fund for an early release of funds from a $50bn deal to ease concerns that the country will not be able to meet its debt obligations for 2019.Macri said in a televised address that Argentina had agreed with the IMF “to advance all necessary funds to guarantee compliance with next year’s financial programme”.Related: Are debt crises in Argentina and Turkey a global warning sign?Related: Argentina agrees to $50bn loan from IMF amid national protests Continue reading...

The UK’s economic future requires more than one city to boast full gamut of jobs. That takes planningThe warning that property values in London will fall this year and next will bring a smile to many who believe house prices have run out of control in the last 30 years.The added warning of a possible full-blown crash in the capital if Britain leaves the European Union without striking a deal will only turn the smile into a beaming grin. For some it is enough to persuade them that a no-deal Brexit is the best thing that could happen to the country.Related: Aston Martin races to become player as global luxury brand Continue reading...

Land now 51% of UK’s net worth – a huge transfer of wealth to landowners, say campaignersA dramatic rise in land values pushed Britain’s wealth to a fresh high of more than £10tn last year, highlighting the huge gains made by developers in property hotspots across the UK.From London and the home counties to Cambridge and popular parts of Devon and Cornwall, land values have become the single largest element of wealth, dwarfing household wealth locked up in property and financial savings. Continue reading...

The US economy also recorded its strongest economic growth since 2014, according to revised second quarter figuresThe US economy recorded its strongest economic growth in nearly four years in the three months to the end of June, according to revised figures.Gross domestic product increased at a 4.2% annualized rate, the commerce department said on Wednesday after revising its second-quarter calculations, establishing the quarter as the strongest in terms of growth since late 2014. Many economists had forecast a downward revision of growth to about 4%.Related: How a Wall Street bull run that smashed all the records evolved Continue reading...

Lesson to be learned from 2008 financial crisis is that the challenge was – and is - politicalIn the aftermath of the 2008 financial crisis, some economists argued that the US, and perhaps the global economy, was suffering from “secular stagnation” – an idea first conceived in the aftermath of the Great Depression. Economies had always recovered from downturns, but the Great Depression had lasted an unprecedented length of time. Many believed the economy recovered only because of government spending on the second world war and many feared that with the end of the war, the economy would return to its doldrums.Something, it was believed, had happened, such that even with low or zero interest rates, the economy would languish. For reasons now well understood, these dire predictions fortunately turned out to be wrong.Related: US will lack fiscal space to respond when next recession comesPolicymakers failed to do enough even to prevent poor households from losing their homes Continue reading...

Markets remain edgy despite strong US economic growth and trade deal with Mexico2.07pm BSTUS economic growth was slightly stronger than expected in the second quarter, coming in at 4.2% rather than 4%. Meanwhile the hope that Canada will join the new trade agreement between the US and Mexico is giving some support to stock markets, although concerns about Italy’s financial position and worries about Spanish banks’ exposure to Turkey are limiting the gains in Europe.2.02pm BSTA quick view from ING strategist Viraj Patel:So $EURUSD barely moves a pip after the 2Q US GDP release (which was revised up to 4.2%). This is not a market driven by economics... it's all politics #SummerLull #backtoschool (next week) pic.twitter.com/neWH9AEA4r1.53pm BSTOverall strong US #GDP report with relatively modest revisions to Q2 estimates:

Spell of unusually cold winter weather followed by heatwave pushes up cost of fruit and vegBritain’s shop prices have risen for the first time in more than five years as the heatwave pushed up the cost of fruit and vegetables.The latest BRC-Nielsen figures show that overall shop prices rose 0.1% in August, entering inflationary territory for the first time since April 2013. Continue reading...

The weekly 5km runs are a global phenomenon. But they were born out of a desire to change lives without charging for itEvery Saturday morning at 9am sharp a little bit of anarchy breaks out across the country. This being Britain, it happens, naturally enough, in our parks. Not that it’s billed as such. It’s meant to be a 5km run, which is why at Richmond Park in south-west London this morning the grass is carpeted with well over 400 people in sports gear. But it has none of the intensity you’d expect at a track or even on a gym treadmill. One woman tugs balloons, to celebrate her 100th run; others prepare to push baby buggies or keep pace with their dogs. Although supported by the charity Parkrun, this and the 559 other events across the UK set to start in a few minutes are entirely self-organised.What they share is an ethos. Parkruns are free to all, and all are treated equally. No hierarchy intrudes between the hares and the tortoises, the old-timers and the debs. Members volunteer to mark the course or keep time or to aid stragglers. So early this morning, as the weekend still brims with promise, on these hectares of parkland owned by the Queen, a little anarchist world briefly comes into focus. One devoid of government nagging or corporate profiteering, but reliant instead on mutual aid and human kindness.Related: How one community beat the system, and rebuilt their shattered streets | Aditya ChakraborttyRelated: Parkrun makes us fitter, but can it make us happier as well?Related: Meet Britain’s Willy Wonkas: the ideas factory that could save UK industry | Aditya Chakrabortty Continue reading...

Agreement eases uncertainty but president threatens tariffs on Canada if it does not sign up

The economy is doing well but the US is in a weak position to manage the inevitable shockThe US economy is doing well. But the next recession – and there is always another recession – could be very bad.

Two former members of Bank of England’s rate-setting committee give views on UK growth

Each month we look at key indicators to see what effect the Brexit process has on growth, prosperity and trade

The latest monthly Guardian analysis finds the UK economy failing to deliver on wage growth

Senior business leader says effects would be much more serious than UK admitsMany businesses in Germany are still hoping the UK reverses its decision to leave the EU, according to one of the country’s top business leaders, who also warned of the dangers of a no-deal Brexit.“The risk of a hard [no-deal] Brexit is growing by the day,” said Joachim Lang, the head of the Federation of German Industries (BDI), in a wide-ranging interview with the Rheinische Post newspaper. “Every business would do well to prepare for this worst-case scenario.”

Despite predictions of gloom from the Treasury and Bank, the public remains optimisticBefore heading off for his summer break Mark Carney said the risks of a no-deal Brexit were uncomfortably high. Last week Philip Hammond warned the Treasury would take an £80bn hit if negotiations between Britain and the EU failed completely.There is a risk to this latest manifestation of Project Fear. If the public really thinks that in eight months’ time Britain is going to be plunged into the economic equivalent of a nuclear winter, the economy will take a serious hit. Continue reading...

As former Leave-voting constituencies start to waver, the party is now free to act in Britain’s interest and oppose this Tory follyThere is a time-honoured expression for offering something that is not needed: “that’s like taking coals to Newcastle” – the north-east of England, of course, for most of the 20th century having been a centre of working coal mines. More recently, however, the coalfields were so run down that, before the carbon tax was introduced in 2013, we were importing coal from Russia and South America for power stations not that far from Newcastle.The miners were very important in Labour party history. When, in the early postwar years, the European Coal and Steel Community (ECSC) was being formed, the possibility of our joining was peremptorily dismissed by Herbert Morrison, foreign secretary in the Attlee government, with the words “the Durham miners won’t wear it”.Perceptions of the damage that the mere prospect of Brexit is now inflicting appear to be strengthening Continue reading...

The president’s remarks overlook the fact that his tax cuts and protectionism destabilise the very bull market he boasts aboutImpeach me and the stock market gets it. There were unmistakable echoes of a mob boss in a gangster movie when Donald Trump insisted that any such action against him would bring an abrupt end to what is now the longest bull market in history.It is a sign of a backs-to-the-wall mentality at the White House that Trump felt the need to lash out in this way. Presidents usually go out of their way to avoid saying anything that might give Wall Street cause for concern. Not this one. The market would crash, Trump said. Everyone would be very poor. Continue reading...

Jerome Powell says central bank will ‘do whatever it takes’ to maintain strong economyThe Federal Reserve chairman has defended the central bank’s approach of gradually raising interest rates, after direct criticism from Donald Trump.Jerome Powell, who was this week attacked by the president for failing to give him “some help” on the US economy, warned that steadily rising borrowing costs would be required to promote job creation and economic growth. Trump had suggested that a change of course would be better for the country. Continue reading...

Trade row between world’s two biggest economies rumbles on; US central bankers defend Federal Reserve’s independence after Trump criticisms2.05pm BSTMarkets continue to drift as the concerns about the US-China trade rift continue, along with uncertainty about how the problems facing Donald Trump will play out.The FTSE 100 is currently up just 0.17%, Germany’s Dax is up a similar amount while France’s Cac has climbed 0.37%.1.52pm BSTUS durable goods #orders fell 1.7% in July & shipments -0.2%, but weakness due to weak aircraft component.

The oil-rich nation is aware of an urgent need to diversify, but it still has a long way to goOn 2 March 1938, Saudi Arabia was a largely nomadic society with a sideline in the tourism generated by pilgrimages to Mecca. The following day, oil was discovered at Dharam and the country’s prospects were transformed for ever.It took time for the full extent of Saudi Arabia’s crude reserves to become known, not least because in early 1938 the world had other things on its mind. But by the time the second world war was over, it was clear that beneath the desert sands there was an abundance of oil that could be easily brought out of the ground. Cheap Saudi oil was a vital component of the world economy’s long post-war boom and the revenues from petroleum exports paid for roads, bridges, apartment blocks and western-style living standards.Related: Oil giant Aramco's $2tn flotation is still on, says Saudi Arabia Continue reading...

China retaliates as US imposes 25% taxes on another $16bn worth of imports

The number of EU workers coming to the UK is falling. The delay in publishing a white paper is damaging the economy

Countries implement 25% tariffs on $16bn worth of imports on both sides in new salvoThe US and China have escalated their ongoing trade war by implementing 25% tariffs on $16bn worth of imports on both sides, bringing the amount levied to a combined $100bn (£78bn) since July.Beijing began implementing the new tariffs on Thursday, when the US said it would begin collecting extra duties in retaliation for what it claimed were unfair Chinese trade practices.Related: Markets nervous amid new US-China tariffs and Trump's troubles - business live Continue reading...

Those observing Istanbul’s construction boom will not have been surprised by last week’s currency collapse – it’s all based on debtFrom a distance, Esenyurt, a newly built up neighbourhood on the edges of Istanbul, looks a bit like Hong Kong or Dubai, with a bustling downtown of shiny skyscrapers. Upon closer examination, however, you notice that tower after tower stands incomplete, lacking windows or furnishings; others are only half-occupied, their windows dark after nightfall.“In the residential areas, 100% of the construction has stopped,” says Mohamed Karman, a local estate agent, from his small office in the central square of Esenyurt. “Do you know why? The materials. Everything is in dollars, you pay in dollars.”Unless [Turkey] exports from time to time, they run into a crisis. It happens every 10 years.We don’t act on a long-term basis. The longest plan I saw in a Turkish company was two monthsRelated: Feel the earth move: images of Istanbul bend time and space Continue reading...

Key S&P 500 index passes landmark as it goes 3,453 days without major correctionUS stock markets passed another landmark on Wednesday as the S&P 500 recorded its longest rally ever, capping a near decade-long Wall Street boom that has gathered pace over the course of this year.The S&P 500 share index, tracking the 500 biggest public companies in America, closed trading on Wednesday having gone 3,453 days – nearly nine and a half years – without a fall of 20% or more, which is the measure used by some analysts for handing it the status as the longest bull market in US history. Continue reading...

Four key factors that shaped nearly a decade of constantly rising US share pricesThe S&P 500 share index is due to break the record for the longest bull market in US stock market history on Wednesday.

Talk of a fiscal black hole is political hot air but going it alone suddenly looks less attractiveIt is getting on for four years since Scotland voted to remain part of the UK and talk of a second referendum has gone a bit quiet. The latest figures outlining the state of the country’s public finances help explain why.Scotland’s budget deficit – even including a share of revenues from the North Sea – remains high and, at almost 8% of gross domestic product, is four times as big as that for the UK as a whole. Continue reading...

Latest data shows gap between income and spending is four times as much as UK as a wholeScotland ran a narrower deficit last year as a stronger performance from the oil industry boosted revenues, but the gap between government spending and income was nearly four times higher than the UK as a whole.The latest Government Expenditure and Revenue Scotland (Gers) data for Scotland shows that for 2017-18 overall state spending hit £73.4bn compared to tax income of just under £60bn, including oil revenues. That left a deficit for the year of £13.4bn, compared with £13.5bn the year before. Scotland’s deficit was equivalent to 7.9% of GDP, while for the UK as a whole it was 1.9%.Related: Scotland's public finances limit its independence options | Larry ElliottRelated: Sturgeon likely to delay decision on second independence vote Continue reading...

S&P 500 hits new peak ahead of US-China trade talks2.05pm BSTHere is our story on the record breaking bull market run in the US:Related: Wall Street poised to set record for longest rally in history1.48pm BSTWith dollar weakness continuing, even the pound is benefiting. Sterling is now up 0.2% at $1.2925 after its earlier dip.1.46pm BSTThe depth of the financial crisis is one reason why the recovery has been record breaking for markets, suggests Will Hobbs, Head of Investment Strategy at Barclays Smart Investor:

While some begrudge a work reunion, the bankers’ model remains the same: picking up pennies in front of a steamrollerWill it be slippery nipples all round? Harvey Wallbangers, maybe, or possibly even a nice Banker’s Lunch (vodka, vermouth, orange liqueur and grapefruit juice). Whatever is on the drinks menu, next month’s 10-year reunion of former Lehman Brothers employees should be quite a night.On 15 September 2008, in the memorable image from the film The Big Short, the fatal Jenga brick of destiny slipped out of place and the whole global financial tower teetered on the edge of collapse. Lehman Brothers was finished, and the rest of us very nearly were too.Buy-backs starve firms of useful investment. If you want to know why productivity and pay remain so low, look hereRelated: In another financial crisis we would have far less wiggle room | Larry Elliott Continue reading...

Strong economies tend to boost incumbents yet the Democrats are riding high in midterm election polls. Why?The US economy is growing, inflation has finally hit the US Federal Reserve’s 2% target and unemployment is quite low – and at an all-time low for African-Americans and Hispanics. For the first time in memory, there are more job openings listed by US companies than there are unemployed people. Such conditions usually foreshadow rising real (inflation-adjusted) wages, which would indicate that American workers, many of whom were left behind in the anaemic post-crisis recovery, might finally reap benefits from the strong economy.Electoral models predict a strong economy favours the party in power and a weak economy dooms it to crushing losses. And yet, with the economy in its best condition in more than a decade, most polls show a substantial Democratic party lead in the run-up to the midterm congressional elections in November. Moreover, most political pundits predict the Democrats will take back control of the House of Representatives. And some even foresee a “blue wave” in which Democrats also retake the Senate, despite having to defend far more seats than the Republicans. In several recent special elections, Republicans have held on by far narrower margins than in past elections for the same congressional seats.Related: Can Turkey rewrite the rulebook for crises in emerging markets?Midterm elections are almost always a referendum on the president and his policies Continue reading...

The Maduro administration has taken one of the world’s big oil exporters to the brink of collapse. Donald Trump wants to tip it over the edgeA century ago, John Maynard Keynes recognised the deadly threat inflation posed to a body politic. He wrote: “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.” It is a lesson that Venezuela’s Nicolás Maduro has yet to learn. Yearly price rises are predicted to hit 1,000,000%. Venezuela’s situation, says the IMF, is not as bad as that faced by Germany in 1923 or Zimbabwe in the 2000s. But it’s not far off. The economy is set to shrink by a fifth. Jobless Venezuelans are leaving in droves for neighbouring countries – only to be greeted by mob violence over the borders.Keynes warned that the ruling class could be overthrown. The irony is that it is Venezuela’s revolutionaries who risk being toppled in nightmarish scenes. Mr Maduro, heir to Hugo Chávez’s populist politics, narrowly escaped an assassination attempt this month. Chávez’s Bolivarian revolution had its roots in social justice, and tapped the world’s biggest oil reserves to aid the poor. Mr Maduro took over just as inflation took off and before oil prices crashed. He failed to tackle an incipient crisis. Instead, he oversaw Venezuela’s descent into economic and social catastrophe. Security forces, who are suspected of killing hundreds of demonstrators, enjoy immunity from prosecution. In June the United Nations warned that the rule of law is “virtually absent” in the country. Continue reading...

A £2bn public finances surplus has fallen to Philip Hammond so he could yet boost the NHSPhilip Hammond just got lucky. What was shaping up to be an extremely tricky budget for the chancellor all of a sudden looks quite a lot easier. July is normally a good month for the public finances because it is a time when tax receipts come rolling in to the exchequer, but the size of the surplus – £2bn – has been a pleasant surprise.Not since Gordon Brown was in his frugal phase at the Treasury during Tony Blair’s first Labour administration 18 years ago has there been a July as good.Related: Squalid prisons are just the start. The entire justice system is in meltdown | Polly Toynbee Continue reading...

Philip Hammond given more scope to increase NHS spending in autumn budgetBritain has recorded the biggest July budget surplus since the millennium, giving a boost to Philip Hammond as he considers ways to pay for greater NHS spending in the autumn budget.The Office for National Statistics said public sector net borrowing, excluding the state-owned banks, went into surplus for July by £2bn, meaning the government received more in tax income than was spent on public services. Continue reading...

EU-imposed austerity is finally over for pauperised Greece – and it’s time for a rethink of the whole European projectGreece has entered a new, “normal” phase now that the formal lending agreement with the troika (International Monetary Fund, European Central Bank, European commission) has come to an end. But after eight years of austerity, the truth is that no one can afford rose-tinted glasses. The crisis has cost Greece 25% of its GDP – unprecedented for any European nation during peace time – the unemployment rate sits at almost 20%, even after hundreds of thousands of people have migrated, and national debt is about 180%.Even without its lending arrangements in place, Greece is not totally free from the creditors – a series of audits will ensure that the continuing reforms will go ahead to ensure a “healthy” economy.Related: Greece's bailout is finally at an end – but has been a failure | Larry Elliott Continue reading...

UK foreign secretary will urge US president to tighten rules on online election advertisingJeremy Hunt has urged the EU to stand shoulder to shoulder with the US administration by imposing more comprehensive sanctions against Russia.In his first speech since his appointment as foreign secretary, Hunt renewed the British attack on Russian efforts to undermine liberal democracies, saying Vladimir Putin had made the world “a more dangerous place”, and that, after a chemical weapons attack in England, the EU should apply more pressure to protect western democracy from Russian interference and ensure Russia sticks to international rules.Related: Is free trade always the answer? Continue reading...

The UK increasing overseas sales to 35% of GDP is a nice idea but too few British firms are onsideThe timing of the government’s latest export drive is far from accidental. With Theresa May intent on showing Brussels that Britain could not just survive but thrive in the event of a hard Brexit, Whitehall has come up with a plan for increasing the amount of goods and services sold overseas.This is by no means the first attempt to broaden the horizons of UK plc. Back in 2015, the aim was to double exports to £1tn a year by 2020. That always looked a stretch and the target was dropped by the international trade secretary, Liam Fox, early last year. Continue reading...

Trade secretary hopes package of measures will transform UK into an ‘exporting superpower’Liam Fox is to unveil a plan intended to increase Britain’s exports after Brexit to 35% of GDP as his cabinet counterpart Dominic Raab heads to Brussels for the latest round of divorce talks with the European Union.The international trade secretary believes there are 400,000 UK businesses that could export but do not, and will try to target them with better loans, guarantees and support – and ask businesses to spell out what barriers to trade they face.Related: Liam Fox says no-deal Brexit now more likely than an agreementRelated: The Guardian view on Brexit and trade: the WTO is not a safety net | Editorial Continue reading...

Caracas shears five zeros from bolívar, which will be pegged to new cryptocurrencyVenezuela moved to shore up its crumbling economy on Monday, devaluing its currency and preparing to raise the minimum wage by more than 3,000% in what the country’s president, Nicolás Maduro, declared a visionary bid to tame rampant hyperinflation.

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Nicolás Maduro’s emergency package to tackle the problem looks doomed to failCountries suffering from an inflationary problem fall into three categories: the ones that have a sharply rising cost of living; the ones gripped by hyperinflation; and the ones where things are so bad comparisons are made with Germany in 1923. With the International Monetary Fund predicting that inflation will hit 1,000,000% by the end of the year, Venezuela falls into the third category.It wasn’t always this way. Venezuela has the highest oil reserves in the world and could once boast of being one of the richest countries in Latin America. Poverty levels were more than halved under the former president, Hugo Chávez, and there was bountiful public investment in health and education.Related: 14m bolivars for a chicken: Venezuela hyperinflation explained Continue reading...

As South American country faces soaraway prices, what is hyperinflation and why is it bad for the economy?Venezuela is introducing economic reforms including new banknotes that lop five zeros off its fast-depreciating currency as the country battles hyperinflation.Banks will close on Monday as they prepare to release the new “sovereign bolívar” amid warnings from International Monetary Fund economists that Venezuela’s inflation rate could exceed 1,000,000% this year.Related: Venezuela prepares to devalue currency, amid fears it may worsen economic crisisRelated: Venezuela's plan to fight runaway inflation lacks key ingredients | Larry Elliott Continue reading...

Greece is now able to raise money in markets after €289bn bailout ends