- The first number is Bolivia’s M2, which is a term used by the bankypeople that basically means “the money in circulation inside a country”.
- The second number is the amount of international currency reserves held by Bolivia’s Central Bank.
Frankly, it’s remarkable. When Evo took office, there were 15 Bolivianos for every dollar saved by the country. Now there are six for every dollar. What this means is that the Bolivian currency has become far stronger under the current government than it was before. This has many beneficial effects, not least of which is that inflation will be far easier to control in the country going forward.
Compared that to The USA, where the printing presses are rolling like never before and everyone fears the stoking of inflation down the line; Bolivia’s monetary policy beats the Fed’s hands down. I’m not exaggerating when I say that the above chart is a great visualization of the newly found financial security of Bolivia, a policy that will serve the country well into the future.
Ben Bernanke, consider yourself well and truly pwned by an ex-coca leaf grower.