A Model to Analyze the Macroeconomic Interdependence of Hong Kong with China and the United States

Fuchun Jin
Additional contact information
Fuchun Jin: Hong Kong Institute for Monetary Research and China Center for Economic Research, Peking University

No 62002, Working Papers from Hong Kong Institute for Monetary Research

Abstract: Based on several stylized facts, this paper develops a macroeconomic model for Hong Kong that emphasizes its interdependence with China and the United States. Important macroeconomic variables such as the price level and nominal wage rate, as well as capital flow, are analyzed first in a static setting and then in a dynamic model. As an application, the model is used to analyze macroeconomic adjustment of Hong Kong in response to economic slowdown in the U.S. and a possible devaluation of the RMB. Theoretical results are obtained both under the assumption of adaptive and rational expectations.

Pages: 29 pages
Date: 2002-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.hkimr.org/uploads/publication/303/ub_full_0_2_42_wp200206_text.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.hkimr.org/uploads/publication/303/ub_full_0_2_42_wp200206_text.pdf [301 Moved Permanently]--> http://www.aof.org.hk/research/HKIMR/uploads/publication/303/ub_full_0_2_42_wp200206_text.pdf [301 Moved Permanently]--> https://www.aof.org.hk/research/HKIMR/uploads/publication/303/ub_full_0_2_42_wp200206_text.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hkm:wpaper:062002

Access Statistics for this paper

More papers in Working Papers from Hong Kong Institute for Monetary Research Contact information at EDIRC.
Bibliographic data for series maintained by HKIMR ().