China’s Dollar-linked Hong Kong during the Global Crisis

This paper explores the domestic price level and trade competitiveness of Hong Kong in addition to the compatibility of this dollar-based currency board to the criteria inspired by the optimum currency area (OCA) theory. On price and competitiveness, findings point out that during the turmoil Hong K...

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Main Author:	Chee-Heong, Quah
Format:	Online
Language:	eng spa
Published:	Universidad Pedagógica y Tecnológica de Colombia 2019
Subjects:	China Hong Kong U.S. Asia currency dollar renminbi money Estados Unidos Dolár moneda dinero
Online Access:	https://revistas.uptc.edu.co/index.php/cenes/article/view/8502

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author	Chee-Heong, Quah
author_facet	Chee-Heong, Quah
author_sort	Chee-Heong, Quah
collection	OJS
description	This paper explores the domestic price level and trade competitiveness of Hong Kong in addition to the compatibility of this dollar-based currency board to the criteria inspired by the optimum currency area (OCA) theory. On price and competitiveness, findings point out that during the turmoil Hong Kong had not performed as well as that in the past and an apparent reason for this is the inflows of hot capital from abroad especially of the US that fuelled rising property prices. On conformity to the OCA criteria, the findings broadly corroborate the fixed exchange regime with the US as the monetary anchor country but at the same time China appears as a prospective contender to US as the monetary anchor. In the longer run, amidst the prolonged economic and monetary weaknesses in the US plus the emergence of renminbi as a global currency, Hong Kong might as well unify its exchange rate with the Chinese money.
format	Online
id	oai:oai.revistas.uptc.edu.co:article-8502
institution	Revista Apuntes del Cenes
language	eng spa
publishDate	2019
publisher	Universidad Pedagógica y Tecnológica de Colombia
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spelling	oai:oai.revistas.uptc.edu.co:article-85022022-06-17T21:35:20Z China’s Dollar-linked Hong Kong during the Global Crisis El dólar chino vinculado al de Hong Kong durante la crisis global Chee-Heong, Quah China Hong Kong U.S. Asia currency dollar renminbi money China Hong Kong Estados Unidos Asia Dolár renminbi moneda dinero This paper explores the domestic price level and trade competitiveness of Hong Kong in addition to the compatibility of this dollar-based currency board to the criteria inspired by the optimum currency area (OCA) theory. On price and competitiveness, findings point out that during the turmoil Hong Kong had not performed as well as that in the past and an apparent reason for this is the inflows of hot capital from abroad especially of the US that fuelled rising property prices. On conformity to the OCA criteria, the findings broadly corroborate the fixed exchange regime with the US as the monetary anchor country but at the same time China appears as a prospective contender to US as the monetary anchor. In the longer run, amidst the prolonged economic and monetary weaknesses in the US plus the emergence of renminbi as a global currency, Hong Kong might as well unify its exchange rate with the Chinese money. Este documento explora el nivel de precios internos y la competitividad comercial de Hong Kong, además de la compatibilidad de esta caja de conversión basada en el dólar con los criterios inspirados en la teoría de la zona monetaria óptima (ZMO). En cuanto al precio y la competitividad, los hallazgos señalan que durante la agitación Hong Kong no se había desempeñado tan bien como en el pasado y una razón aparente de esto son las entradas de capital proveniente del extranjero, especialmente de los Estados Unidos, que impulsaron el alza de los precios de las propiedades. En conformidad con los criterios de la ZMO, los hallazgos corroboran ampliamente el régimen de cambio fijo con los Estados Unidos como ancla monetaria, pero, al mismo tiempo, China aparece como un posible candidato a contendor de Estados Unidos como ancla monetaria. A más largo plazo, en medio de la prolongada debilidad económica y monetaria en los Estados unidos, más el surgimiento del renminbi como moneda global, Hong Kong podría también unificar su tipo de cambio con el dinero chino. Universidad Pedagógica y Tecnológica de Colombia 2019-02-07 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer reviewed Article text application/pdf text/xml https://revistas.uptc.edu.co/index.php/cenes/article/view/8502 10.19053/01203053.v38.n67.2019.8502 Apuntes del Cenes; Vol. 38 No. 67 (2019); 95-121 Apuntes del Cenes; Vol. 38 Núm. 67 (2019); 95-121 2256-5779 0120-3053 eng spa https://revistas.uptc.edu.co/index.php/cenes/article/view/8502/7613 https://revistas.uptc.edu.co/index.php/cenes/article/view/8502/11182 Copyright (c) 2019 Quah Chee-Heong http://creativecommons.org/licenses/by-nc-sa/4.0
spellingShingle	China Hong Kong U.S. Asia currency dollar renminbi money China Hong Kong Estados Unidos Asia Dolár renminbi moneda dinero Chee-Heong, Quah China’s Dollar-linked Hong Kong during the Global Crisis
title	China’s Dollar-linked Hong Kong during the Global Crisis
title_alt	El dólar chino vinculado al de Hong Kong durante la crisis global
title_full	China’s Dollar-linked Hong Kong during the Global Crisis
title_fullStr	China’s Dollar-linked Hong Kong during the Global Crisis
title_full_unstemmed	China’s Dollar-linked Hong Kong during the Global Crisis
title_short	China’s Dollar-linked Hong Kong during the Global Crisis
title_sort	china s dollar linked hong kong during the global crisis
topic	China Hong Kong U.S. Asia currency dollar renminbi money China Hong Kong Estados Unidos Asia Dolár renminbi moneda dinero
topic_facet	China Hong Kong U.S. Asia currency dollar renminbi money China Hong Kong Estados Unidos Asia Dolár renminbi moneda dinero
url	https://revistas.uptc.edu.co/index.php/cenes/article/view/8502
work_keys_str_mv	AT cheeheongquah chinasdollarlinkedhongkongduringtheglobalcrisis AT cheeheongquah eldolarchinovinculadoaldehongkongdurantelacrisisglobal