Transmitted unemployment under the linked exchange rate system : evidence from Hong Kong

Jimmy RAN, Youqing ZHOU

Research output: Journal PublicationsJournal Article (refereed)peer-review

Abstract

This paper explores a link between exchange rate and unemployment at the aggregate level. We find that 1% increase in the US unemployment rate transmits, on average, 0.53% increase in Hong Kong unemployment under the linked exchange rate system.
Original languageEnglish
Pages (from-to)131-133
Number of pages3
JournalEconomics Letters
Volume117
Issue number1
DOIs
Publication statusPublished - 1 Oct 2012

Funding

We are especially grateful to James Heckman for his enlightening and helpful comments. We also appreciate valuable suggestions made by Ronald Balvers and W.S. Siebert and we are benefited from the feedback in the Pacific Rim Conference organized by the American Western Economic Association International and Hong Kong Economic Association. We would like to express our appreciation of the Research Funding DS11A1 from Faculty of Social Science, Lingnan University, Hong Kong. All possible remaining

Keywords

  • Exchange rate
  • Transmission effect
  • Unemployment

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