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Central Bank Crisis Simulation

#economics #policy #simulation #macroeconomics

Simulate a monetary policy response to a hyperinflationary spiral in a developing economy.

Assume the role of a central bank governor in a developing economy experiencing 150% monthly inflation. Outline a 5-step stabilization program to restore confidence in the currency. Your plan must include specific interventions regarding interest rates, reserve requirements, currency issuance, and a dollarization strategy. Critically analyze the potential social fallout of each step.