Exchange Rate Volatility and Macroeconomic Performance in Hong Kong.

22 Pages Posted: 28 Aug 2007

See all articles by Mark Crosby

Mark Crosby

University of Melbourne - Melbourne Business School

Multiple version iconThere are 2 versions of this paper

Date Written: June 2000

Abstract

This 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, pre and post, 1983 is presented, before a more formal econometric framework is utilised 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, however, it is found that the currency board period is one of low macroeconomic volatility.

Suggested Citation

Crosby, Mark, Exchange Rate Volatility and Macroeconomic Performance in Hong Kong. (June 2000). Hong Kong Institute for Monetary and Financial Research (HKIMR) Research Paper WP No. 03/2000, Available at SSRN: https://ssrn.com/abstract=1009495

Mark Crosby (Contact Author)

University of Melbourne - Melbourne Business School ( email )

200 Leicester Street
Carlton, Victoria 3053 3186
Australia

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