Volatility of fundamental variables under different exchange rate system : a simple test for Hong Kong
Document Type
Journal article
Source Publication
Applied Economics
Publication Date
1-20-2002
Volume
34
Issue
2
First Page
253
Last Page
258
Abstract
This paper presents a comparison in the changes of Hong Kong macroeconomic fundamental variables before and after its currency was 'pegged' to the US dollar in October 1983. Using a simple method from Flood and Rose (1995) and Baxter and Stockman (1989), this paper compares the volatilities of all aggregate variables used by those investigators in so far as these data are available for Hong Kong. The results show, contrary to the dominating empirical literature for the G-7 countries, that the volatilities of more than half of the nominal and real variables under the float are significantly higher than those under the link.
DOI
10.1080/00036840110036288
Print ISSN
00036846
E-ISSN
14664283
Publisher Statement
Copyright © 2002 Taylor & Francis Ltd
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Ran, J. (2002). Volatility of fundamental variables under different exchange rate system: A simple test for Hong Kong. Applied Economics, 34(2), 253-258. doi: 10.1080/00036840110036288