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 language | English |
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Pages (from-to) | 131-133 |
Number of pages | 3 |
Journal | Economics Letters |
Volume | 117 |
Issue number | 1 |
DOIs | |
Publication status | Published - 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