Venezuela and Argentina are the Greeces of South America, says this Economist article.
Which may make Chile the Germany of South America, but fortunately for the Chileans, they’re not in a monetary union with Argentina.
Most economies are in peril worldwide, but while Colombia, Uruguay, Chile, and even Peru, have been holding relatively steady, the great socialist experiments in Argentina and Venezuela will soon come crashing down.
This paragraph from the Economist article about Venezuela tells you all you need to know about the ability of Venezuelan politicians to solve the crisis:
The government blames the crisis on private businesses and “irresponsible” use of hard currency by ordinary Venezuelans. It has ordered drastic cuts in dollar allowances for travellers, especially to popular destinations like Miami. Remittances to relatives abroad have also been slashed. In a bid to curb runaway inflation, it has introduced a new law restricting companies’ profits to 30% of costs. Long jail sentences await transgressors.
More laws. That’ll solve it.
For some Austrian perspectives, see:
Inflation, Shortages, and Social Democracy in Venezuela by Matt McCaffrey
Economies are Not Destroyed in a Day and How the Fed Causes Booms and Busts in South America by Nicolás Cachanosky.
Argentina’s Politicians Should Read Mises by Iván Carrino