What To Know: Hyperinflation
What To Know: Hyperinflation
Jun 16, 2022
weforum.org
Several countries that have experienced hyperinflation adoptdollarization as a way to control domestic inflation. For example,Ecuador has used the U.S. dollar as its domestic currency since2000. What does dollarization imply about the exchange rate betweenEcuador and the United States? Why might countries experiencinghyperinflation adopt dollarization? Why might they do this ratherthan just fixing their exchange rate?
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