Credibility of Hong Kong’s Currency Board: The Role of Institutional Arrangements

Yum K. KWAN, Francis T LUI, Leonard K. CHENG

Research output: Book Chapters | Papers in Conference ProceedingsBook ChapterResearchpeer-review

Abstract

Since its introduction in Mauritius in 1849, the currency board as a form of monetary institution has generally been neglected in the economics literature. This is probably due to the fact that currency boards were mainly adopted in relatively small and unimportant economies. In recent years, the situation has changed. Argentina’s readoption of the currency board in 1991 and its subsequent impressive economic growth record has
contributed to its credibility as a useful monetary system. Its subsequent adoption in Estonia, Lithuania, and Bulgaria further indicates its increasing popularity. Indeed, during the recent global financial turmoil, the currency board had been prescribed for the battered economies of Russia and Indonesia
Original languageEnglish
Title of host publicationRegional and Global Capital Flows: Macroeconomic Causes and Consequences
EditorsTakatoshi ITO, Anne O. KRUEGER
PublisherUniversity of Chicago Press
Chapter7
Pages233-259
Number of pages27
ISBN (Print)0226386767
Publication statusPublished - Jan 2001
Externally publishedYes

Publication series

NameNBER-East Asia Seminar on Economics
PublisherNBER
Volume10

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