HongKong’sLinktotheUSDollarcoverstheoriginsofthecity’scurrencycrisisin1983,theinitialresolutionofthecrisisbycreationofatraditionalcurrencyboard,thesubsequentproblemsleadingtotheAsianfinancialcrisisof1997–98,andthelaterreforms.TheepiloguetracesHongKong’smonetarydevelopmentsbetween1990and2005.
Thisvaluablecompendiumofarticles,originallywritteninthebimonthlyjournalAsianMonetaryMonitorduringtheyears1981–89,includesthekeyarticlethatformedthebasisfortheHongKonggovernment’sdecisionin1983topegthecurrencytotheUS$,aswellasotherimportantdocumentsofhistoricalrecord.
ThemaincontributionofthebookisitsdetailedmonetaryanalysisofHongKong’suniquefinancialsystembeforeandafterthecurrencycrisisof1983.ThebookexplainsthecollapseofthefloatingHK$underthepressureofcapitaloutflowsduringtheSino-Britishnegotiations(1982–84)overthefutureofHongKong,thefascinatingstoryoftheintroductionofthelinkedratesystempeggingtheHongKongdollartotheUSdollar,andthesubsequentgradualprocessofreformandrefinementofthecurrencyboardmechanism(1988–2005).Eachchapterisprecededbyanintroductorynarrativethatputstheanalysisinitshistoricalcontextandplacestheeconomicargumentinperspective.HongKong’sLinktotheUSDollarwillenablereaderstoobtainacomprehensivepictureofwhythelinkedratesystemwasputinplace,howitworks,andwhyithasbeenstrengthenedovertheyears.
HONGKONG KONG EVOLUTION ORIGINS US DOLLAR HONG LINK
