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1. In 2009, Zimbabwe ended its hyperinflation by adopting the U.S. dollar as legal tender. What potential problems could this strategy have for the Zimbabwean government?

2. What does the statistical evidence show about the link between the growth rate of the money supply and the inflation rate in the long run? Is the link between the growth rate of the money supply and the inflation rate stronger in the short run or in the long run?

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