 Can Japan or China replace the US as the monetary anchor for Hong Kong and Macau?Asia Pacific Business Review, 2012, vol. 18, issue 3, 335-354 Abstract: This contribution attempts to examine the relative importance of the US, Japan and China to Hong Kong and Macau, two effective dollar-based currency boards today, by evaluating the economic potentiality of Japan or China as an alternative monetary anchor country against the US. The assessment is made according to the criteria prescribed by the optimum currency areas (OCA) theory. In addition to that, a subsidiary analysis is done to evaluate in general the suitability of their fixed exchange rate regimes, regardless of the anchor country. Amidst the existing dollar linked arrangement and the rising dominance of China, significant evidence suggests that Japan, despite its lacklustre domestic conditions, might be at least as good a monetary anchor as the US for Hong Kong. In the meantime, China seems to be a more promising monetary anchor alternative for Macau. The features of Hong Kong and Macau also appear to broadly and endogenously support their fixed exchange rates, but not all the features of Macau, a HK-dollar-based currency board, are consistently symmetrical with those of Hong Kong. Date: 2012 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:apbizr:v:18:y:2012:i:3:p:335-354 Ordering information: This journal article can be ordered from DOI: 10.1080/13602381.2011.608822 Access Statistics for this article Asia Pacific Business Review is currently edited by Professor Chris Rowley and Malcolm Warner More articles in Asia Pacific Business Review from Taylor & Francis Journals |
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