Cuba is he the poorest country in the world According to him Annual Hanke Misery Index 2021 (HAMI, for its English acronym), recently published by its creator, the economist Steve H Hanketeacher of Johns Hopkins University in BaltimoreUnited States.
“Cuba, which has fallen dramatically compared to last year’s HAMI, now holds the inglorious title of poorest country of 2021. As you can see, Cuba’s HAMI score has been fueled by soaring inflation of 1,221.8%. This level of inflation was not surprising given the 95% devaluation of the Cuban peso in 2021, the expert explained in a National Review article.
“Currency devaluations lead to higher inflation rates. In fact, after a devaluation, inflation will rise and with it the cost of producing goods and services, including exports, in the country that has devalued its currency. Inflation will steal any possible shortterm competitive advantage that might initially accompany devaluation. This is exactly what happened in Cuba, added Hanke, who clarified that people on the island do not live so miserably when they are favored by the Communist Party.
According to the economist, the Cuban regime “could easily solve its inflationary crisis by installing a currency board, as Dr. Kurt Schuler and I have suggested in Monetary Reform for a MarketOriented Cuba (1992)”.