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According to the report, Venezuela was the most miserable country in the world. In response to this, Hanke said: "Venezuela holds the gloomy title of the world's most miserable country in 2018, as it did in 2017, 2016 and 2015."
Argentina, however, rose to second place after another peso crisis. Since its creation, Argentina has experienced many economic crises. Most can be fired from domestic mismanagement and currency problems.
Iran was third in the standings, before Brazil came in fourth. Turkey took fifth place while the giant of Africa, Nigeria, came out sixth. The Misery index was calculated using economic indices including unemployment rates, inflation and bank loan.
For Nigeria, the unemployment rate was the main factor contributing to its miserable state. According to Hanke, "The first index Misery Index was built by economist Art Okun in the 1960s to provide President Lyndon Johnson with a glimpse of the easily digestible economy.
This initial misery index was simply the sum of a country's annual inflation rate and its unemployment rate. The Index has been modified several times, first by Robert Barro of Harvard, then by myself.
"My modified Misery index is the sum of unemployment, inflation and bank credit, less the percentage change in real GDP per capita. Higher readings on the first three items are "bad" and make people more miserable. These are offset by a "good" (growth of GDP per capita), which is subtracted from the sum of "evils".
A higher Misery Index index corresponds to a higher level of "misery". This is a fairly simple step for a busy president, with no time for lengthy information sessions, to understand at a glance. "The attached table presents the Misery Index rankings for the 95 countries that report relevant data in a timely manner. For reasons of consistency and comparability, and with a few exceptions, the data were extracted from the Economist Intelligence Unit. "
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