Question: Question 4 (10 points): Several countries that have experienced hyperinflation adopt dollarization as a way to control domestic inflation. For example, Ecuador has used the

Question 4 (10 points): 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?

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