For over ten years, Venezuela has been plagued with a deep economic and political crisis that has also recently transpired into a humanitarian issue. In the past five years, GDP has gone down over 50% and hyperinflation is forecasted by the IMF to reach over 1,000,000% for this year, 2018. The economic downfall has also led to shortages in food, medical supplies, and other commodities nationwide.

In their latest research paper: “Fool’s Gold: On the Impact of Venezuelan Devaluations in Multinational Stock Prices” Miguel Angel Santos, Dany Bahar, and Carlos Alberto Molina analyze how multinational companies with subsidiaries in Venezuela have been impacted by currency devaluations as the economic crisis worsened.

Today on CID’s Research Spotlight podcast, Camila Lobo, CID Events & Outreach Manager, interviews one of the co-authors of this research paper, Miguel Angel Santos, who provides insight on the current economic crisis in Venezuela and what motivated them to delve into this research.

Miguel Angel Santos is an Adjunct Lecturer in Public Policy at Harvard Kennedy School of Government, and a Senior Research Fellow at the Center for International Development (CID) at Harvard University.

Read the paper:

https://www.hks.harvard.edu/centers/cid/publications/fellow-graduate-student-working-papers/currency-devaluations-venezuela

Interview recorded on August 2, 2018.

About Miguel Angel Santos: Miguel Angel Santos is an Adjunct Lecturer in Public Policy at Harvard Kennedy School of Government, and a Senior Research Fellow at the Center for International Development (CID) at Harvard University.

At CID, he has been involved in various research projects aimed at helping governments to rethink their development strategies, both at the national and sub-national levels. Since he joined CID in August 2014, he has been involved in projects at the national level in Mexico, Panama, and Venezuela, and at the sub-national level in Mexico in the states of Chiapas, Baja California, Tabasco and Campeche; and the city of Hermosillo at Sonora state. He has also performed as project manager in the projects leading to the build-up of the Mexican Atlas of Economic Complexity, and the Peruvian Atlas of Economic Complexity.

Before joining the field of international development, Miguel worked for ten years in corporate finance and business development in Latin America, performing as Director of Finance for the Cisneros Group of Companies (1997-2003), Head of Corporate Finance for Mercantil Servicios Financieros (2005-2007), and Business Vice-President for Sony Pictures and Entertainment Latin America (2008-2009). At that point, he decided to switch tracks and get involved in development economics.

He holds two Master of Science degrees in International Finance and Trade (2011) and Economics (2012) from Universitat Pompeu Fabra, a Master in Public Administration from Harvard University (2014), and a Ph.D. in Economics at Universidad de Barcelona (2016). He was the head of the Macroeconomic Policy Team for presidential candidate Henrique Capriles Radonski in the Venezuelan elections of 2012.