I spoke with my friend Magda at the World Bank, an economist that deals with Latin America, the one who had told me almost a year ago that what has happened will happen. She says that hyperinflation is on the horizon now and Without the ability to borrow or attract the necessary dollars, the economy will fall into a hyperinflationary spiral.
This is something they can't say publicly due to political and diplomatic sensitivities, but if I lived in the DR I would be preparing for an economic collapse and great social instability. The economic team in the DR is in total denial about the political and economic situation and international agencies are losing their patience with the government's inability to act or implement modest reforms.
Given all the negative press in the US about the Dominican Republic, a bailout is out of the question as people would see that as a bailout of the corrupt elite. The only card the Dominican government can play is the threat of a flotilla of yolas heading to the USA.
This is something they can't say publicly due to political and diplomatic sensitivities, but if I lived in the DR I would be preparing for an economic collapse and great social instability. The economic team in the DR is in total denial about the political and economic situation and international agencies are losing their patience with the government's inability to act or implement modest reforms.
Given all the negative press in the US about the Dominican Republic, a bailout is out of the question as people would see that as a bailout of the corrupt elite. The only card the Dominican government can play is the threat of a flotilla of yolas heading to the USA.
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