In an inflationary environment such as the one experienced by Venezuela in its current reality, where the increase in the prices of products necessary for the operation of a company is constantly increasing, added to this is the loss of purchasing power of the currency, which directly affects companies.
Due to this situation, companies need to attract customers, opting for credit policies which generate accounts receivable, which if not properly managed, have a negative influence on the inflationary process already existing in the country.
Inflation may seem to be a phenomenon of modernity, but it is not so, already in the extinct Roman Empire there were these same evils, and they were as cruel as in some countries today, the nature is the same, money is issued without any backing, irresponsibly.
In ancient Rome they also did it, but it was by removing a large amount of metal from the coins and mixing them with other metals, in this way they managed to mint coins with a lower value of gold or silver content, thus reducing the value of the precious metals of the coins and therefore their purchasing power.
Inflation is a phenomenon that cannot be induced, generated, stimulated or produced from outside the country's leadership. On the contrary, it is the result of putting huge amounts of money from different activities, including non-agricultural, manufacturing or manufacturing activities, in the hands of the public.
Consequently, when this happens, people use the maximum amount of money in circulation to satisfy all the needs they can, i.e., the demand for goods and services increases, but also, since there is not enough supply of goods and services to cover their needs, the prices of the little that exists rise disproportionately, which translates into inflation and also into speculation..
Didn't the old Rome split after that in western and eastern part? Western died and eastern part lived pretty well until Mongolians and Turks attacked Eastern Europe
greetings @worldfinances
you are absolutely right in your comment, whatever you want to mean is the genesis of the problem that undoubtedly dates back several years and is still present.
Thank you very much for your comment
I wish you a wonderful end of the year full of many blessings for you and your family.