| Journal Call no. | HC497.H6H45 |
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| Article Title | The linked exchange rate system : a new regime. |
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| Is Part Of | Hang Seng economic monthly ; Sep/Oct 1998, p.1-4, illus. |
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| Abstract | The severity and the manipulative nature of speculative attacks on the Hong Kong dollar in 1997 revealed inadequacies in the adjustment mechanisms of the linked exchange rate system and necessitated reform measures by the Hong Kong Monetary Authority (HKMA). The seven-point package introduced by the HKMA in September 1998 has strengthened the monetary system's capability to deal with currency attacks. Interest rates have become less prone to manipulation and their volatility would be greatly reduced. By making the whole monetary base convertible into United States (US) dollars and limiting the expansion of the monetary base to the inflow of funds with rules, the currency board discipline has been reinforced and brought in line with the evolution of the monetary system in the fifteen years prior to 1998. |
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