M1 and the monetary base are almost equal at this time, but this is unprecedented in modern monetary history, as usually the monetary base is a fraction of M1.
The Bolívar’s collapse is rather tragic, considering the Bolívar was actually one of Latin Americas’ strongest currencies during Venezuela’s peak from the 1950s to 1970s.
Recessions emerge when the central bank reverses its loose monetary stance. But the seeds of recession were sown earlier by private lending practices that grew out of central-bank money creation.
The only way to end the booms and busts brought by inflationary credit is to eliminate the central bank's counterfeiting that constitutes and creates that inflation.
