Title

Macroeconomic instability in Hong Kong : internal and external factors

Document Type

Book chapter

Source Publication

China, Hong Kong and the world economy : Studies on globalization

Publication Date

2006

First Page

200

Last Page

218

Publisher

Palgrave Macmillan

Abstract

This chapter examines the extent to which the dollar peg may have helped to exacerbate macroeconomic volatilities in Hong Kong, by estimating an IS-LM open economy model for Hong Kong via a structural vector auto-regressive (VAR) process (Gali, 1992; Rogers, 1999). The econometric techniques of impulse response and variance decomposition analysis are applied to the VAR model to separate the major causes of inflation and instability.

Publisher Statement

Copyright @ contributors 2006. Access to external full text or publisher's version may require subscription.

Additional Information

ISBN of the source publication: 9781403987426

Language

English

Recommended Citation

Ma, Y. & Ng, R. C. W. (2006). Macroeconomic instability in Hong Kong : internal and external factors. In L. S. Ho & R. Ash (Eds.), China, Hong Kong and the world economy: Studies on globalization (pp. 200-218). New York: Palgrave Macmillan.

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