Year: 2004
Type: article
Abstract: The paper presents evidence on whether Hong Kong’s currency board arrangement, in place since 1983, has affected the volatility of real macroeconomic variables. Simple evidence on the relative volatilities of relevant macroeconomic variables before and after 1983 is presented, before a more formal econometric framework is utilized to examine the linkages between the exchange rate and the real economy. It is found that the currency board period has been one of relative stability in Hong Kong, though it has also been a period where external factors have been relatively benign. Even after controlling for the external environment, it is found that the currency board period is one of low macroeconomic volatility.
Source: Review of Development Economics
Author: Mark Crosby
Institution: The University of Melbourne
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2095936023