President Donald Trump is irrationally exuberant about rebuilding Venezuela’s economy and its oil industry. The reality on the ground is far less encouraging. Venezuela is a broken nation-state. Over the past decade, its economy has contracted by roughly 75%. The country’s institutions have collapsed, and its currency is effectively worthless after years of hyperinflation.

Rebuilding Venezuela’s economy will require far more than optimism and prodding by Trump. The new government, led by acting President Delcy Rodriguez, will need to act quickly, with significant input from American financial experts, in order to curb inflation and stabilize the Bolívar currency.

Responsible fiscal and monetary policy is essential to restoring confidence. Money supply must be strictly controlled, and an independent central bank must be established if Venezuela is to regain even basic monetary credibility. Ending hyperinflation will also require Venezuela to reengage with........

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