Preview

The Costs and the Benefits of Hong Kong’ Currency Board System

Powerful Essays
Open Document
Open Document
2379 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Costs and the Benefits of Hong Kong’ Currency Board System
The costs and the benefits of Hong Kong’ currency board system

A e f g w se f s f s f s f s f s f s f s f s f s f s f
You Zhang
1148100
Introduction S b c d e f g w se f s f s f s f s f s f s f s f s f s f s f s f s Hong Kong, a province in the west-east of China, has developed from a small fishing community into an international city in modern times which is contributes to the economic policy as well as political policy. S b c d e f g w se f s f s f s f s f s f s f s f s f s f s f s f s The currency board system was first introduced in the British colony of Mauritius in the year of 1849 and Hong Kong introduced this system in 1983. The currency board system comprises the currency board, commercial banks, and other financial institutions. It differs from the central bank. A central bank is a monetary authority that has discretionary monopoly control of the supply of the reserves of commercial banks and a currency board is a monetary institution that issues notes and coins (and, in some cases, deposits) fully backed by a foreign "reserve" currency and fully convertible into the reserve currency at a fixed rate and on demand. S b c d e f g w se f s f s f s f s f s f s Does the economy of Hong Kong benefits from the currency board system? How much does the system contribute? In this essay, we are going to start from the monetary systems in Hong Kong’s history. The second part is the theoretical analysis on advantages and disadvantages Hong Kong’s currency board system. The experience Hong Kong’s currency board system had are going to be discussed in part three a. A conclusion will be draw at the end. History S b c d e f g w se f s f s f s f s f s f s f s f s f s f s f s f s Monetary policy in Hong Kong has been made to construct a stable and sustainable economic system for more than one hundred fifty years. Looking back at the history of Hong Kong’s economic system, this task appears not an easy one. Tracing back


References: Copeland L., 2005, Exchange Rates and International Finance, Prentice Hall, England Greenwood J., 2004, Currency Boards in theory and Practice: Hong Kong and Argentina, AMVESCAP Index of Economic Freedom, 2006, Hong Kong 2006 [online], Available: http://www.heritage.org/research/features/index/country.cfm?ID=HongKong (access on 13 March 2006) Kwan Y.K Li H., 2001, Should the Hong Kong Dollar Be Delinked?, University of Toronto Lu D Maute J., 2000, Stabilization via Currency Board, University Hohenheim Park K
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Factors Behind Economic Growth in Hongkong and Singapore
    • 419 Words
    • 2 Pages

    Factors Behind Economic Growth in Hongkong and Singapore

    There are many similarities between Hong Kong and Singapore. Both countries enjoy high economic growth rates for the past three decades, they are known as “East Asian Tigers” because they made a transition from poverty to Newly Industrialized Economies (NIE’s) in a very short period of time. Both Hong Kong and Singapore were British colonies with both legal and administrative systems of their former colonial powers. They are the busiest ports in the world in terms of throughputs. They have climbed the industrial ladder and are now important international financial centers because of their reliance on trade since 1960’s (Kim.et al 1994).…

    • 419 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Relationship Between China and Hong Kong
    • 4336 Words
    • 18 Pages

    Relationship Between China and Hong Kong

    Hong Kong is currently under the rule of the PRC as a special administrative region, with the practice of ‘One country, two system’. Hong Kong exercises capitalism under the rule of the British government and thus continues its practice after the handover. Hong Kong is closely located to mainland, showing her essential role in the economic coordination. The number of cross-boundaries cooperation has been increasing steady, and today, Hong Kong and mainland develops an inseparable relationship in terms of political, economical and social aspect.…

    • 4336 Words
    • 18 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Why they are fighting? ---Intropections of Hong Kong's Independence movements
    • 2201 Words
    • 9 Pages

    Why they are fighting? ---Intropections of Hong Kong's Independence movements

    Since 1997 when Hong Kong returned to China, under the framework of ‘One Country, two systems’, the Communist Party of China(CPC) have basically performed the promise of ‘Hong Kong people ruling Hong Kong’ with a high degree of autonomy in most respects.…

    • 2201 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Charles Keith
    • 370 Words
    • 2 Pages

    Charles Keith

    Hong Kong is well known as one of the world’s best shopping place, from products at reasonable price until luxury goods…

    • 370 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    A Study of Hrm of Pccw in Hong Kong
    • 3951 Words
    • 16 Pages

    A Study of Hrm of Pccw in Hong Kong

    During the end of last century, the former British Crown Colony of Hong Kong has encountered a dramatic change in political and economical. The labor market has also greatly affected by these two factors.…

    • 3951 Words
    • 16 Pages
    Best Essays
    Read More
  • Good Essays

    REASON AND IMPACT OF INCREASE IN CHINESE YUAN VALUE OF CHINA
    • 4483 Words
    • 23 Pages

    REASON AND IMPACT OF INCREASE IN CHINESE YUAN VALUE OF CHINA

    After much pressure on Chinese Yuan (CNY), China made decision on increase in their currency in 6/2010. How will this increase impact on relevant objects? This article aims to find reason and impacte of increase CNY value of Chine on Chinese economy and other countries, including Vietnam…

    • 4483 Words
    • 23 Pages
    Good Essays
    Read More
  • Powerful Essays

    The Shanghai Free Trade Zone: Interest Rate Strategy
    • 2066 Words
    • 9 Pages

    The Shanghai Free Trade Zone: Interest Rate Strategy

    During the 1960s, changes in US regulations such as reserve requirements, interest rate restrictions, and borrowing limits made offshore banking more attractive to local banks. Consequently, USD liquidity migrated to London, where…

    • 2066 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Good Essays

    Honk Kong Marketing Environment
    • 597 Words
    • 3 Pages

    Honk Kong Marketing Environment

    This weekend I had the opportunity to visit one of Asia’s most beautiful cities. Hong Kong was the experience of a life time and a moment in time that I will not soon forget. The city proved to be awfully crowded most of the time with shoulders and elbows being bumped by just walking on the sidewalks. Due to Hong Kong’s over population it is easier to identify its market and marketing strategies. That being said, a more condensed market calls on companies to intensify their efforts when attempting to attract the consumer. The history of Hong Kong dates back to the Opium war of 1842. London would acquire it and turn it into its modern state. Hong Kong started like an island by the coast located on the coast southern to China’s mainland. Most records do not begin to emerge until the start of British Colonial rule. The city began as a trading ground, fishing village, salt production hub. Honk Kong would later become a military port of large strategic value, and also a massive international financial center. Hong Kong’s market has a long history including its aged street markets, economic markets, modern day advertisement, and upcoming markets.…

    • 597 Words
    • 3 Pages
    Good Essays
    Read More
  • Best Essays

    The Four Asian Tigers
    • 2072 Words
    • 9 Pages

    The Four Asian Tigers

    The four Asian Tigers—Hong Kong, South Korea, Singapore, and Taiwan—are known for their remarkable growth over the latter half of the 20th century, which propelled them into some of the world leaders in finance and high value added manufacturing. The causes, or roots, of such a phenomenal success have been at the center of a vast literature written on these economies during the past decades, a debate still raging up to this day. The overwhelming tone of academic work on the subject, however, seems to attribute the success of these economies to their respective policies and institutions, which enabled each country to utilize their comparative advantage for advancing economic growth. Literature on the development of the Asian Tigers points to specific endogenous factors that are deemed crucial to their success. For example, the views put forth by Paul Krugman in his influential article “The Myth of Asia’s Miracle” (1994) emphasize that although the development of the Asian Tigers were noteworthy, they were predictably so—that is, not so “miraculous”—based on their growth in inputs.…

    • 2072 Words
    • 9 Pages
    Best Essays
    Read More
  • Better Essays

    Economies of Hong Kong and the Pan-PRD
    • 1640 Words
    • 7 Pages

    Economies of Hong Kong and the Pan-PRD

    Hong Kong has been ranked the freest economy in the world by the Heritage Foundation for the 19th consecutive year since the index was first published in 1995. We will see the criteria of a free economy according to the Heritage foundation. Then we will explain why and how Hong Kong is ranked as the first free economy in the world.…

    • 1640 Words
    • 7 Pages
    Better Essays
    Read More
  • Good Essays

    Is it enough for Hong Kong to remain successful by staying at the top globally in its economic freedom?
    • 902 Words
    • 4 Pages

    Is it enough for Hong Kong to remain successful by staying at the top globally in its economic freedom?

    Hong Kong has ranked as the world's freest economy in The Wall Street Journal and Heritage Foundation's Index of Economic Freedom for 17 consecutive years, since the inception of the index in 1995.1Being economic free helps the successful of Hong Kong. Hong Kong is the richest region in the world. However, In World Competitiveness Yearbook 2013 published by IMD, the ranking of Hong Kong competitiveness is dropped from the top to the third.2 In the following, I will discuss and explain why it is not enough for Hong Kong to remain successful by staying at the top globally in its economic freedom by talking about the drawbacks and problems caused by the economic freedom.…

    • 902 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Profile of Hong Kong
    • 24860 Words
    • 100 Pages

    Profile of Hong Kong

    This profile analyzes the political, economic, social, technological, legal, and environmental (PESTLE) structure in Hong…

    • 24860 Words
    • 100 Pages
    Powerful Essays
    Read More
  • Good Essays

    Milk Powder Case Study
    • 1326 Words
    • 6 Pages

    Milk Powder Case Study

    Hong Kong’s relationship with the Mainland is complicated by a lot of baggage. Many residents came to Hong Kong fleeing the upheavals of China in the 1950s and 1960s. The blood links to the mainland are deep. Some worked to help China stand up as it adopted an open-door policy, They made a good living in the process. Then, as China opened to the world, it was Hong Kong entrepreneurs who give it substance with investment.…

    • 1326 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Hong Kong Minimum Wage
    • 1021 Words
    • 5 Pages

    Hong Kong Minimum Wage

    2. Chow. C (2002). The free market and Hong Kong. Conditions for a free market system. Retrieved on September, 20, 2010, from http://www.hkpri.org.hk/bulletin/6/chow-cg.html…

    • 1021 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Hong Kong as an International Financial Centre:
    • 12935 Words
    • 52 Pages

    Hong Kong as an International Financial Centre:

    · Hong Kong is often perceived as the hub of most major multinational companies and…

    • 12935 Words
    • 52 Pages
    Powerful Essays
    Read More

Related Topics