g Saudi Arabia. Evidently, oil is one of Venezuela’s most valuable commodities accounting for 95% of Venezuela’s exports and 25% of its gross domestic product (Independent 2018). However, during a period of time in which the global price of oil dropped, foreign demand to buy Venezuelan oil dipped simultaneously. A key factor that lead to Venezuela’s current crisis, is evidently their sole dependence on a single commodity – oil. As University of Florida’s Gamarra explains, this means “you are bound to the ups and downs of the oil price,”. Without a range of high value added assets, an economy lacks diversity and is vulnerable to ‘moments of downturns in your principal commodities (CNBC 2019).’ On an individual basis, hyperinflation renders any savings worthless due to its eroding impact on money. Consequently, people may hoard goods for instance, food due to the soaring prices. Situations such as these may lead to shortages of food supply, contributing to the issue further. The Bolívar (Venuzuelan currency) depreciated in value as the cost of imports increased, leaving the Venezuelan economy to perish. Consequently, Nicolas Maduro – Venezuela’s new president – decided to print money (TheConversation 2019). Although this is an efficient strategy to implement during times of temporary price shock, in the case of Venezuela, the desired results didn’t adhere. Alongside the price of oil continuing to decrease, Venezuela’s oil output also fell resulting in international investors looking elsewhere further decreasing the value of the Bolívar. The government proceeded to print off more money in order to pay their expenses, inevitably resulting in the cycle that lead to hyperinflation (TheConversation 2019). To begin with, whether or not inflation is always deemed to be a challenge or if there are actually any potential benefits surrounding the macroeconomic issue will be discussed. Generally speaking, moderate inflation has some benefits, especially when it’s compared to deflation. For instance, the real value of debt decreases, moderate rates also enable prices of goods to adjust to their real value prices. In some cases, at levels of moderate inflation, companies are able to increase wages whilst the prices of goods increases. However, the average inflation target is usually around 2% which is quite contrasting to that of Venezuela’s. Long term economic growth is thought to be optimised when price stability is maintained, whic