> If you can cut down the influence of the black market you can restore goods being bought and sold using the local currency, which will slow down inflation.
I doubt very much that you can have greater control over the local market by hoarding Bolivars, especially around border areas. You don't think that merchants/people would accept columbian pesos/brazilian reals as legal tender in border areas? Or euros/US dollars in all areas?
> By creating artificial scarcity I'm then able to increase the demand for goods on the black market, which is where I make my money.
There is already a huge unmet demand for goods on the black market. The artificial scarcity is not produced by hoarding currency, it's produced by price controls/disincentives by producers.
> The losses incurred by hoarding increasingly worthless currency can be offset by the profits made elsewhere.
It's unclear to me why hoarding money increases the profits made elsewhere. Why wouldn't you just skip to the profits being made (eg taking advantage of government subsidized goods) and ignore the hoarding of a rapidly depreciating currency?
I doubt very much that you can have greater control over the local market by hoarding Bolivars, especially around border areas. You don't think that merchants/people would accept columbian pesos/brazilian reals as legal tender in border areas? Or euros/US dollars in all areas?
> By creating artificial scarcity I'm then able to increase the demand for goods on the black market, which is where I make my money.
There is already a huge unmet demand for goods on the black market. The artificial scarcity is not produced by hoarding currency, it's produced by price controls/disincentives by producers.
> The losses incurred by hoarding increasingly worthless currency can be offset by the profits made elsewhere.
It's unclear to me why hoarding money increases the profits made elsewhere. Why wouldn't you just skip to the profits being made (eg taking advantage of government subsidized goods) and ignore the hoarding of a rapidly depreciating currency?