A Synthesized Discussion on the Macao Monetary Reform

Xinhua Gu ()
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Xinhua Gu: Faculty of Business Administration, University of Macau, Macao, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2010, vol. 5, issue 4, 604-621

Abstract: The prolonged RMB appreciation affects Macao deeply and requires a major monetary reform without further delay. What we propose for Macao reform as an optimal choice includes shifting its monetary anchor to the strong RMB, revaluing its domestic currency to the original level, and setting up a sovereign wealth fund for autonomous growth. This proposal is based on Macao’s economic fundamentals such as trade competitiveness, business relations, real welfare, monetary stability, and genuine development. We also recommend a monetary union of Macao with Hong Kong as the 2nd-best choice of reform by introducing what we term the SAR dollar

Keywords: monetary reform; Macao; Hong Kong; the Mainland of China (search for similar items in EconPapers)
JEL-codes: E43 E59 F36 (search for similar items in EconPapers)
Date: 2010
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