Hong Kong's Currency Board System

Currency Boards are extensions of Fixed Exchange Rate Regimes in which the domestic currency is pegged to a foreign currency. After Currency Boards have been largely replaced by central banks in the middle of last century, the system regained popularity in the 1980s and especially 1990s again. In this book, pros and cons of adopting a Currency Board System and the macroeconomic effects of the system on inflation, growth and unemployment are presented and discussed. Furthermore, the Hong Kong Currency Board (HKCB) is being analyzed as a main case including the following issues: description of tasks of the HKCB, difficulties in operating the system, predictability of US-Dollar purchases by the board and an analysis of the HKCB performance in the past. Seminar paper aus dem Jahr 2005 im Fachbereich Wirtschaft - Volkswirtschaftslehre, Note: 2,3, Universität Hamburg (Arbeitsbereich Makroökonomie und Quantitative Wirtschaftspolitik), Veranstaltung: Seminar Economic Growth and Development in China, 24 Quellen im Literaturverzeichnis, Sprache: Englisch.