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Suppose a deal is struck between a consortium of Chinese SOE's, to provide cash, machinery, and technology, designed to help oil extraction and processing, to
Suppose a deal is struck between a consortium of Chinese SOE's, to provide cash, machinery, and technology, designed to help oil extraction and processing, to the Venezuelan Government in exchange for an equity stake in some oil fields in Venezuela. Suppose this deal radically improves the fiscal position of the Venezuelan government. Given this information, what would be your policy advice be to the Venezuelan authorities to end the inflationdepreciation spiral? Explain using theory and intuition
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