Is the Hong Kong Dollar Real Exchange Rate Misaligned?

Frank Leung () and Philip Ng
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Philip Ng: Research Department, Hong Kong Monetary Authority

No 721, Working Papers from Hong Kong Monetary Authority

Abstract: This paper estimates the equilibrium path of the Hong Kong dollar real effective exchange rate (REER) and compares it with the actual path of the Hong Kong dollar REER to assess the extent of real exchange rate misalignment. Empirical results from various approaches of exchange rate assessment adopted in this study generally suggest that there was no obvious evidence of exchange rate misalignment for the Hong Kong dollar in 2006. This is consistent with the observation that there were no obvious signs of macroeconomic imbalances in the Hong Kong economy.

Keywords: Real effective exchange rate; Hong Kong dollar (search for similar items in EconPapers)
JEL-codes: F32 F41 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2007-12
New Economics Papers: this item is included in nep-cba, nep-cna, nep-ifn and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:hkg:wpaper:0721

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