Evaluation of Shock Therapy in the Bolivian Economy

In the short run, the hyperinflation rates were cut down and eventually put to an end and the value of money slowly crept back. The poor who had pockets eaten away by inflation slowly were able to lead a normal life other than a life of poverty. In the long run, the economy was brought back to normal and money soon had value. There was no need to print large sums of money from the Central Bank and the government was able to control its debts by spending no more than what it earned. The economy was set up for international trade and the people were able to lead a normal life without shortages of necessities.…