Why might countries experiencing hyperinflation adopt dollar

Assignment Help Econometrics

Reference no: EM131205797

Several countries that have experienced hyperinflation adopt dollarization as a way to control domestic inflation. For example, Ecuador has used the U.S. dollar as its domestic currency since 2000. What does dollarization imply about the exchange rate between Ecuador and the United States? Why might countries experiencing hyperinflation adopt dollarization? Why might they do this rather than just fixing their exchange rate?

Reference no: EM131205797

Questions Cloud

Determine the voltage v2 and its components for the network : Using schematics, determine the voltage V2 and its components for the network of given figure.

Personal wealth outside of the stock option : If Sharon Jacobs of the previous problem is also a founder of the company and has retained 8 mil- lion shares of its stock, how much of a difference will the auditor's decision make in her personal wealth outside of the stock option?

How case is handled by the customer relationship management : How the case is handled by the "Customer Relationship Management (CRM)". In its response to define what is "CRM System", and how it is integrated, to be so in this case.

Work-in-process inventory account : If the cost per equivalent unit for November was $4.60 for materials and $5.20 for labor and overhead, the balance in the work-in-process inventory account would be:

Why might countries experiencing hyperinflation adopt dollar : Why might countries experiencing hyperinflation adopt dollarization? Why might they do this rather than just fixing their exchange rate?

What are your ethical and legal responsibilities to ensure : Identify 5 sources that you have found that are the most relevant and best support your purpose statement. List the sources and then record the main idea as notes to use as part of your research later. Identify case studies, library, Web, and othe..

Family own the long-lasting boot : Create a vision and mission statement to fit the company described below: Mohammad Abul and his family own the Long-lasting Boot (LLB) store.

What is the growth rate of the money supply in this economy : Your final option is to achieve your inflation target using interest rate policy. Using the Fisher equation, compute the current nominal interest rate in your country. What nominal interest rate will allow you to achieve the inflation target?

Write essay that evaluates william fungs first interaction : Write an essay that evaluates William Fung's first interaction with the TS Group's Chinese subsidiaries. According to the case study, he revised some financial policies, but the general managers and division heads decided not to comply.

User Account

All Pages