On the sustainability of currency boards : evidence from Argentina and Hong Kong : [Version: September 2008]
- This paper examines the sustainability of the currency board arrangements in Argentina and Hong Kong. We employ a Markov switching model with two regimes to infer the exchange rate pressure due to economic fundamentals and market expectations. The empirical results suggest that economic fundamentals and expectations are key determinants of a currency board’s sustainability. We also show that the government’s credibility played a more important role in Argentina than in Hong Kong. The trade surplus, real exchange rate and inflation rate were more important drivers of the sustainability of the Hong Kong currency board.
Author: | Chun-Yu Ho, Wai-Yip Alex Ho |
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URN: | urn:nbn:de:hebis:30-70504 |
URL: | http://www.imfs-frankfurt.de/fileadmin/user_upload/pdf/Working%20Paper%202009_20_Ho_Ho.pdf |
Parent Title (German): | Working paper series / Institute for Monetary and Financial Stability ; 20 |
Series (Serial Number): | Working paper series / Institute for Monetary and Financial Stability (20) |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2009 |
Year of first Publication: | 2009 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2009/09/17 |
GND Keyword: | Argentinien; Hongkong; Currency Board |
Issue: | Version: September 2008 |
HeBIS-PPN: | 218601034 |
Institutes: | Wissenschaftliche Zentren und koordinierte Programme / Institute for Monetary and Financial Stability (IMFS) |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Licence (German): | Deutsches Urheberrecht |