The crucial importance of Venezuela to the Cuban economy is widely known. Previous posts in this Blog evaluate the impact of a break-up of the close alliance between Venezuela and Cuba.[1] Such an outcome would constitute a severe shock for the economy of the island. The break-up could result from a change of government in […]
Simulation of a Venezuela-Cuba Breakup[i]
What could derail the Cuban economy? This could arise from a sharp external shock to the economy. A clear event that many analysts and commentators have in mind is the falling apart of the tight relationship between Cuba and Venezuela which is broadly compared to the alliance between Cuba and the Soviet Union during 1961-1990. […]
Cuba Ill Prepared for Venezuelan Shock
The passing of Hugo Chavez was widely anticipated in Cuba by top leaders that carefully arranged for the medical treatment of the Venezuelan president in the island. The special devotion of Chávez for the revolution made his country a great benefactor in the form of oil, investments and financial subsidies. Estimates by Ernesto Hernández-Catá (please […]