Title

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

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Full-text Version

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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