Chapter

How to Rescue the Hong Kong Dollar Three Practical Proposals

John Greenwood

in Hong Kong's Link to the US Dollar

Published by Hong Kong University Press

Published in print November 2007 | ISBN: 9789622098909
Published online September 2011 | e-ISBN: 9789882207004 | DOI: http://dx.doi.org/10.5790/hongkong/9789622098909.003.0006
How to Rescue the Hong Kong Dollar Three Practical Proposals

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This chapter is concerned with the proposal for a currency board arrangement. It argues that the adoption of a central bank was not acceptable for institutional or other reasons, and the exchange rate could in effect be controlled by the re-introduction of a currency board system without far-reaching institutional changes. It also discusses issues such as stability of the monetary determinant ratios, and explains how cash arbitrage would work under the restored currency board.

Keywords: currency board arrangement; central bank; exchange rate; currency board system; monetary determinant ratios; cash arbitrage

Chapter.  12573 words.  Illustrated.

Subjects: Business and Management

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