A Tale of Two Exchange Rate Systems: Singapore and Hong Kong. How Well Have Their Respective Monetary/exchange Rate Systems Served Their Economies?

A Tale of Two Exchange Rate Systems: Singapore and Hong Kong
ECON 103 International Economics A

Section G12
Topic 5:
A Tale of Two Exchange Rate Systems: Singapore and Hong Kong. How well have
their respective monetary/exchange rate systems served their economies?
Prepared For:
Professor Wong Fot Chyi
Prepared By:
Chong Huai Jiao
Hu Zhengbin
Lee Kang Wee
Moritz Baumann
Randy Ong Kee Meng
CONTENTS

Executive Summary........................................................................................... 2
1. Introduction.................................................................................................... 3
1.1 The Impossible Trinity and Choices of the Cities................................3
1.2 Effective Exchange Rate..........................................................................4
1.3 Economic Structure of Singapore and Hong Kong..............................4
2. Analysis of Impact of Exchange Rate Systems Side-by-Side
Comparison of Singapore and Hong Kong.....................................................6
2.1 Economic Stability - Inflation.................................................................6
2.2 Economic Stability - Unemployment.....................................................7
2.3 Economic Growth - GDP...........................................................................8
2.4 Economic Growth - Openness to Trade...............................................10
3. Case Study Analysis.................................................................................... 11
3.1 Asian Financial Crisis (1997)................................................................11
3.2 Global Financial Crisis (2008)...............................................................13
4. Conclusion..................................................................................................... 15
Bibliography...................................................................................................... 16
EXECUTIVE SUMMARY
Singapore and Hong Kong are 2 city states that share so many similar
characteristics and economic traits. However, both of these countries exchange
rate regimes are drastically different from each other. This paper compares and
contrast the two different exchange rate regimes, and attempt to determine how
well has these regimes served their respective countries.
Due to the Impossible Trinity, countries cannot achieve free capital flow, fixed
exchange rate and sovereign monetary policy all at the same time. Hence with
small and open economies, Singapore and Hong Kong requires free capital flow
into their economies. This results in Singapore choosing a managed float
exchange rate regime and Hong Kong selecting a currency board system, pegged
to the US dollar.
Singapore and Hong Kong possess two very different economic structures, where
the manufacturing sector contributes largely to Singapores economy, unlike
Hong Kong. While the two different exchange rates regimes no doubt have an
impact countries economic structure, it is neither the main nor sole cause for
the different structures. Rather, political influence is shown to be the main factor
in shaping the structure of Singapore and Hong Kongs economies.
Singapore enjoys more economic stability, where its inflation and employment
rates are generally more stable than Hong Kongs. Over the years, Singapores
inflation rates are less volatile, and lower than Hong Kong. In addition, Hong
Kong experiences a more employment rates in recent years and takes a longer
time to recover after recessions.
Both exchange rate regimes have served their respective countries well in term
of economic growth. Singapore and Hong Kong have similar economic growth
patterns and international trade. However, Singapore enjoys higher economic
growth and performance over the years.
Lastly, through the rigorous analysis of two case studies, Singapores managed
float exchange rate regime is deemed to have outperformed the currency board
of Hong Kong. Both economies are performing well to existing expectations
although Singapore stands out as a more successful model of an intermediate
2

foreign exchange regime by reflecting a faster and stronger economic recovery
as opposed to Hong Kong.
1. INTRODUCTION
Hong Kong and Singapore's economy are small, open and export-oriented. The
two cities also serve their regions as a major trading port and regional financial
centre. Despite the similarities, Hong Kong and Singapore differs greatly in their
exchange-rate system and monetary policy. Hong Kong follows currency board
system and pegged their currency to United State at a fixed rate of 7.8, while
Singapore adheres to a managed floating system where the currency value is
managed against a basket of twelve currencies.
In this paper we first look at the basis for the choosing of exchange rate system.
Second, we examine the economic structure of both countries, and examine the
differences between the 2 nations and see if the differences are due to the
exchange rate policies. Next, we analyse the implication of the two cities
exchange-rate system on the growth of their economy. Lastly, we look at how the
exchange rate system of the two cities deflects impact from the East Asian
Financial Crisis in 1997-98 and the Subprime mortgage crisis in 2008.
1.1 THE IMPOSSIBLE TRINITY AND CHOICES OF THE CITIES

For a country to choose a suitable exchange rate system, they must adhere to a
restriction called the impossible trinity to ensure economic stability. A country
cannot adopt an exchange regime that achieves exchange rate stability,
monetary policy autonomy and free capital movement (Hamada & Yosuke, 2001)
(Carbaugh, 2011) all at once. Simultaneously fulfilling all three objectives can
cause a speculation attack if interest rates between the domestic country and
the anchor country differ.
Due to both cities economies being very open, it is difficult to restrict capital
flow. Both countries are major financial centres for their respective regions, and
this plays a substantial role in the cities free capital mobility. As a result, both
cities are left with only the options of monetary autonomy or fixed exchange rate
to determine its exchange rate system.
3

Hong Kong chose to establish a currency board system in 1983, pegging its
exchange rate to US Dollar. Their impending return of sovereignty to China in
1997 lowered investors confidence in the HK currency, as speculators were
afraid that China would abandon Hong Kongs capitalist system (Carbaugh,
2011). This strategy of pegging their exchange rate to U.S.A, which is a major
trading partner, has helped stabilize Hong Kongs currency due to its low and
stable interest rates. Even when there was uncertainty arising from the China-HK
talks over the return of sovereignty, the stable currency allowed Hong Kong to
continue its rapid economic growth.
Singapore, on the other hand, chose a managed float exchange rate regime. This
allows their currency to float according to the weighted average of its 12 major
trading partners, while giving Singapore the flexibility to adjust its currency
through foreign exchange intervention. According to Monetary Authority of
Singapore (MAS, 2001), promoting price stability and economic growth while
preserving the purchasing power of Singapore Dollar (SGD) is their main
objective for choosing a managed float regime. The managed float regime kept
inflation rates low and stable and appreciate gradually over time through a soft
peg to Singapores major trading partners. The regime also allows government to
manage huge market shocks and speculation through direct measures such as
buying and selling in the foreign exchange market.
1.2 EFFECTIVE EXCHANGE RATE

To have a basis for comparison, we will look at the nominal and real effective
exchange rate for the two cities. Nominal Effective Exchange Rate (NEER) is the
unadjusted weighted average of a pool of foreign currency against the domestic
currency. Real Effective Exchange Rate (REER) is the inflation-adjusted value of
the NEER. NEER is used as a mean to determine nominal appreciate or
depreciation of the domestic currency, while REER is used to determine the
purchasing power of domestic currency against the foreign currency.
1.3 ECONOMIC STRUCTURE OF SINGAPORE AND HONG KONG

Since both countries are small geographically and are both equipped with little
resources, they should actually feature the same distribution of the three sectors
- agriculture, manufacturing and services. Both countries have undergone a rapid
4

shift towards more knowledge-based activities and climbed up the value-chain
during the last decade.
Despite these similarities, the economic distribution differs between the 2
countries. Even though the Gross Domestic Product of Singapore, which was
worth 362.7 billion US Dollars in 2012, is quite similar to the GDP of Hong Kong,
which was 363.7 billion US Dollars (Indexmundi), there are some differences in
the size of the manufacturing and the services sector. The agricultural sector
accounts for 0% of GDP in both countries, likely due to the lack of human capital
and land resource. However, the manufacturing sector in Singapore is much
larger, contributing to 27.8% of GDP compared to that of Hong Kong, where GDP
contribution is only 7%. The difference of 20.8% goes into the larger service
sector in Hong Kong, which accounts for 93%. whereas in Singapore, this sector
only contributes to 72.2% of the GDP. Even without the public sector, services in
Hong Kong still account for 84% of GDP (Hong Kong Government, 2013).
These are significant differences. We could suggest that the roots of these
inequalities are the different exchange rate regimes in Singapore and Hong Kong.
But in fact, there is a way more simple reason that accounts for the differences.
The post-1978 economic reforms of the Chinese Mainland opened many new
possibilities for Trade between China and Hong Kong. Since Hong Kong suffers
from a lack of natural resources, especially land space, thus it transferred almost
its whole manufacturing to China. At these days, Hong Kongs population rose in
some areas up to 400.000 (Young, 1992) persons per square mile, which
contributed to a shortage of industrial floor spaces within the city. This change
enabled Hong Kong to specialize in knowledge-based services like trade and
financial services, which outreaches Singapore by far. Singapore is also equipped
with very little natural resources and space, but nonetheless, it still has a larger
manufacturing sector than Hong Kong. Singapore, in contrast to Hong Kong, is
not politically connected to any other country. As a result, it is unable to move its
manufacturing sector overseas as easily as Hong Kong.
Another reason for the movement of the manufacturing sector to China is the
fact that both currencies, the Chinese Renminbi and the Hong Kong Dollar had
been pegged to the US Dollar, which eliminated any kind of exchange rate risk
for transferring tradable goods between Hong Kong and the Mainland. Since
5

China relaxed its peg to the US Dollar (Anderlini, 2012), this argument has been
weakened, but the impacts still remain. There is little exchange rate risk in Hong
Kong moving its entire manufacturing sector overseas to China. In contrary, for
the case of Singapore, any trade with another country will always be affected by
the volatility of exchange rates, which makes it seem more profitable for
Singapore to maintain the remaining manufacturing. While Singapore has little
human
capital
available
as
well,
it
cannot
afford
migrating
its
entire
manufacturing sector.
2. ANALYSIS OF IMPACT OF EXCHANGE RATE

SYSTEMS
SIDE-BY-SIDE COMPARISON OF SINGAPORE AND

HONG KONG
2.1 ECONOMIC STABILITY - INFLATION

14
12
10
8
6
4
2
0
Hong Kong SAR Inflation,

average consumer prices
Percent change
Singapore Inflation, average
consumer prices Percent
change
-2
-4
-6
Fig 1. (International Monetary Fund)
From 1980 to 2013, Singapores inflation is an average of 2.26%, while the

average inflation in Hong Kong is 4.64% (Fig 1). On the whole, Singapore has
seen much lower inflation rates compared to Hong Kong. In recent years, the
only period when Singapore experienced a higher inflation rate than Hong Kong
was during the 2008 global financial crisis. Even then, Singapore quickly
recovered in the following years. Singapores exchange rate policy has been
fairly successful in protecting itself from external economic shocks.
The observation of Singapore enjoying lower inflation rate than Hong Kong is not
surprising, as the monetary policy objective in Singapore is to attain low inflation
rates in order to promote price stability as a basis for sustainable economic
growth (MAS, 2001).
Inflation patterns are closely related to the exchange rate policies of both
nations. This is most distinct during periods of strong economic growth in the
7

world. From 1988 to 1995, economic conditions were strong, and Hong Kong and
Singapore saw strong GDP growth (Fig 3). Nominal exchange rate was allowed to
appreciate in Singapore, which offsets the impact on inflation (MAS, 2001). The
inflation rates during that period were low at 2.35%. In contrast, Hong Kong saw
an average inflation of 8.79%. In Hong Kong, the monetary policy is aimed at
achieving a stable nominal exchange rate against the USD, which resulted in no
monetary policy responses to inflation (Gerlach & Gerlach-Kristen, 2006).
Inflation was thus allowed to soar.
A similar observation can be made during periods of weakening economic
conditions during the mid-1980s. Singapores exchange rate policy allowed it to
keep inflation low during the recessionary period brought about by U.S.As
recession, which had a ripple effect on the rest of the world economy. In order to
regain competitiveness, Singapore allowed its NEER to depreciate in order to
bring down its REER (MAS, 2001). In contrast, Hong Kongs inflation remained
much higher.
Overall, Hong Kong has seen higher inflation rates, and also more volatile
inflation as compared to Singapore. This is consistent with each nations
monetary policy objective. Singapores exchange rate policy allows it to respond
much quicker to various inflation shocks, and allows it to control the inflation
levels.
On the other hand, Hong Kong places a focus on financial stability
through linking with U.S.A.
2.2 ECONOMIC STABILITY - UNEMPLOYMENT

9
8
7
6
5
4
3
2
Hong Kong SAR

Unemployment rate Percent
of total labor force
Singapore Unemployment
rate Percent of total labor
force
1
0

Fig 2. (International Monetary Fund)
In general, both economies have been able to keep unemployment rates low. As
seen from Fig 2, the average unemployment rate for Hong Kong from 1980 to
2012 is 3.45%, while that of Singapore is 3.17%. Both countries are competitive,
open economies, and unemployment rates are generally kept low, around the
same levels all the way from 1980 to 1997. However, we noticed an interesting
pattern from 1998 onwards, which was the onset of the Asian Financial Crisis.
First, Hong Kong saw a much sharper increase in unemployment. Second, the
increase in unemployment has been much more protracted in Hong Kong than
Singapore.
This is consistent with our explanation earlier that Singapores exchange rate
policy allows it to react faster to external economic shocks, enabling it to reduce
unemployment quickly. Unemployment in Singapore have increased much lesser
in the face of recession, and declined more quickly in the aftermath of a
recession.
In simulations of world recession, there were substantial short-run output losses
in Hong Kong arising from such economic shocks (Yip, 2002). One reason for this
is that price and wages have been slow in adjusting to economic shocks. From
the data observed, wages and prices have been inflexible in adjusting. As Hong
Kong is unable to influence its NEER through monetary policies, its wages and
prices have remained high vis--vis its peers such as Singapore, where the NEER
have been allowed to deflate and hence lowering the wages and prices. As prices
in Hong Kong remained relatively high after the Asian Financial Crisis,
unemployment increased, and this is sustained as Hong Kong has been slow in
adjusting its wages and prices (Yip, 2005).
This is also exacerbated by Chinas supply of cheap labour. Hong Kongs
proximity to China makes it an attractive option for firms to relocate their
operations to China, where the wages and prices are much lower. This thus made
the recovery process for Hong Kong even harder.
GDP (Current US$)

300000000000
200000000000
100000000000
0
SG GDP
HK GDP
GDP Growth (annual %)

20
15
10
5
0
-5
-10
SG GDP Growth%
HK GDP Growth%
2.3 ECONOMIC GROWTH GDP
Figure 3 depicts the GDP growth rates of Singapore and Hong Kong from 1983 to
2011. Both countries experience relatively high growth rates during this period,
as compared to the worlds average growth in GDP. During this period, Singapore
experienced an average GDP growth of 6.54% while Hong Kong achieved an
average of 4.78%. Comparatively, the world average GDP growth rate for that
period was only 2.4% (Tverberg, 2012). Thus both exchange rate regimes seem
to serve its respective economies well. However, over the years despite showing
Fig 3
Fig 4
similar trends in the spikes and declines, it can be observed from Figure 3 that
Singapores GDP growth rate is consistently higher than Hong Kong. Singapores
real GDP finally overtook Hong Kongs in 2011, as shown in figure 4, despite
Hong Kong having almost 2 times of Singapores GDP in 1997.
Despite
having
similar
demographics,
economic
policies
and
business
environment, both countries experienced different economic growth where

Singapore outperformed Hong Kong in recent years. This difference can be
explained by the 2 different exchange rate regimes. One reason was due to
10

imported inflation. Pegged to a weakening US dollar, Hong Kongs exchange rate
depreciated against its trading partners. Meanwhile China, a main trading
partner, saw its RMB appreciate due to strong economic performance. Hence the
increase in price for Hong Kongs imports resulted in the increase in input cost for
its domestic products. Since Hong Kong is dependent mainly on trade and
exports for economic revenue, the increase in import inflation resulted in the
decrease in profitability of its exports. This is because in bid to retain its
competitiveness, Hong Kong could not increase its export price to offset the
increase in cost.
Another reason is due to the lack of independent monetary policy for Hong Kong.
The impossible trinity explains Hong Kongs choice of fixed interest rate and free
capital flow at its expense of an independent monetary policy. This lack of control
on
monetary
policies
has
strong
impact
on
its
economic
growth
and
performance. A perfect case study to illustrate this impact is the 1997 Asian
Financial Crisis. Hong Kongs NEER in 1998 to 2002 was 11.4% higher than in
1996 (Yip, 2005). And since it pegged its currency to the then increasingly strong
US dollar, it could not use exchange rate depreciation to mitigate the adverse
impacts. This increased the burden of price and wage adjustment and deepened
the recession. Hence its inability to implement its own monetary policy adversely
affected Hong Kongs economic performance. This can be further supported from
the fact that Singapores real GDP was relatively flat after mid-1997, whereas
Hong Kong experienced a large contraction (Devereux, 2003).
11
2.4 ECONOMIC GROWTH - OPENNESS TO TRADE
Import Value Index (2000=100)

300
200
100
0
SG
HK
Fig 5
Fig 6
Export Value Index (2000=100)

400
300
200
100
0
SG
HK
Despite having 2 different exchange rate regimes, Figures 5 shows a strikingly

similar trend in the imports and exports of Singapore and Hong Kong. Export and
import values have seen a strong increase throughout the years. Both countries
have high openness to trade, where exports of goods and services over GDP for
Hong Kong and Singapore are at 222.96% and 208.95% respectively (Trading
Economics).
Since Singapore has a small economy, it is essentially a price taker as it does not
have the ability to affect world price. The high import content of domestic
demand means that domestic prices are vulnerable to any change in world price
12

and exchange rate. Furthermore, the change in exchange rate will affect
domestic demand and demand for domestic resources. Thus, by utilising a
managed floating rate system, Singapore has been able to maintain price
stability, strengthen its export demands throughout the years and control its
inflation level.
On the other hand, Hong Kongs choice of a fixed exchange rate regime has also
served it well in term of international trade. Introduced to restore confidence in
Hong Kong dollar (Yip, 2005), the fixed exchange rates regime helped its small
but open economy. The fixed exchange rate reduced the cost of exchange rate
volatility, albeit at the expense of other economic variables such as inflation.
With the Hong Kong dollar pegged to USD, it is easier for business to estimate
costs, determine pricing and forecast revenues, as they do not need to worry
about losses due to fluctuations in exchange rates.
Thus despite Singapore and Hong Kong having similar economic characteristics
but different exchange rate regimes, the systems adopted seem to have served
its respective economy well.
3. CASE STUDY ANALYSIS

The following analysis will explore how each country responded and recover from
the Asian Financial Crisis in 1997 and Global Financial Crisis in 2008.
3.1 ASIAN FINANCIAL CRISIS (1997)

Following the Asian crisis due to the financial meltdown of Thai currency, nations
like South Korea and Indonesia acquired the greatest damage, followed by Hong
Kong with substantial impact and Singapore being least affected. Nevertheless,
countries throughout the region still suffered in terms of trade performance,
namely export competitiveness, given that demand and confidence slumped
from all around.
The reason why Singapore proved to be relatively insulated from the shock was
primarily due to active management by the MAS in its monitoring band
mechanism which was accompanied by a policy of gradual nominal effective
exchange rate (NEER) appreciation (Figure 7). The advantage of devising floating
exchange rate lies in its flexibility to adjust the economy to adapt to foreign price
13

shocks and sustain a real effective exchange rate that is constant with the
economys macroeconomic fundamentals. In 1997, MAS engineered Singapore
dollars to depreciate by 20% to cushion and steer the economy to a soft landing
(Mahinda & Anoma, 2003). This resulted in relatively stable domestic prices and
allows nominal depreciation to translate into an undervalued real effective
exchange rate (REER). Based on Figure 7 and 8, Singapores NEER outplaced
that of its REER while Hong Kong experienced stronger appreciation of its REER
than NEER due to higher domestic inflation rate. This implies that Hong Kongs
overall export performance is lagging behind Singapore.
14
(Figure 7)
(Figure 8)
15
In Hong Kong, the less transparent and more independent fixed exchange rate
regime, were responsible for growing misalignments of the economy during the
crisis. During the regional crisis, Hong Kong dollar being rigidly peg to the USD
led to an overvaluation of the currency from second quarter of 1997. Alongside
with devaluation of Singapore currencies, Hong Kong became more susceptible
to speculative attack as large amount of reserves was necessary to hold the
fixed exchange rate in place. Additionally, they made no attempt to intervene in
their capital market, unlike Singapore who sold bonds to raise long term
finances. Therefore, Hong Kongs GDP fell by 5% while Singapore being one of
the few economies in East Asia, achieved a positive growth of 0.5% that year
(Ramkishen, 2000).
3.2 GLOBAL FINANCIAL CRISIS (2008)

The global financial crisis is one where Singapore faces sharpest economic
downturn, even more severe than that of the Asian financial crisis. While the
impact of Asian crisis was felt immediately, the impact of global crisis was
delayed and only bite in during the third quarter of 2008. In April 2008, MAS
decided to re-centre the Singapore dollar exchange rate band and continued its
four-year appreciation policy. However, in October 2008 they re-adjusted its
policy stance to zero percent appreciation with no re-centring of the band or
change to the width. Through this period, the Singapore economy remains
anchored by sound fundamentals and resilient financial system. Unlike the Asian
crisis, there is no undue weakening of the currency where Singapore dollars was
allowed to depreciate against USD and appreciate against regional currencies
(Lim & Jaya, 2010). Therefore, Singapore currency was appreciating when the
crisis occurred and only changed to a neutral and depreciating stance when
exports plunge and inflation started trending downwards.
Between 2009 and 2010 unemployment rate fell from 3% to 2.2% (Figure 9) due
to availability of large pool of foreign workers (C & Lin, 2013). This provided
buffer against rising unemployment during the crisis and made the economy less
vulnerable compared to the Asian crisis previously. Therefore, while Singapores
economy contracted in 2009 as a result of the global financial crisis, it rebounded
back in 2010 (Figure 10) through regained export competitiveness.
16

For economies with a fixed exchange rate regime and perfect cross-border
capital mobility, such as Hong Kong, having adequate fiscal scope to cushion
economic downturns is particularly important. Under a fixed exchange rate
regime and with an open financial account, the Hong Kong monetary authority
cannot pursue an independent monetary policy.
Responding to the crisis, Hong Kong government instantly set forth a series of
measures to stabilize the financial market, foster employment and fund
businesses. As a service economy, Hong Kongs financial sector was severely
impacted as productivity and employment declined (C & Lin, 2013). Fortunately,
most banks in Hong Kong have raised their provision levels and were sufficiently
capitalized to weather the crisis (Deutsche Bank Research 2009). Additionally,
Hong Kongs close ties with China, strong foreign exchange reserves, minimal
public debt, strict anticorruption measures, sound banking system and effectual
legal system enabled it to quickly respond to the financial crisis. While Hong
Kongs open economy made it exposed to the crisis, its growing integration with
China has mitigated the effect of the economic downturn. Although Hong Kongs
GDP fell in 2009 (Figure 10), a recovery began in the third quarter 2009, and the
economy grew by around 6.8% in 2010.
(Figure 9)
17
18
(Figure 10)
4. CONCLUSION
The more flexible intermediate exchange rate regime in Singapore has
outperformed the currency board system in Hong Kong in general. Singapore has
seen generally lower levels of inflation and unemployment, as well as stronger
growth. Yet, that is not to say that Hong Kong should change their system as it
involves a highly complicated and difficult situation that they have to weigh
against their economy.
Based on the two case studies, both economies are performing well to existing
expectations although Singapore stands out as a more successful model of an
intermediate foreign exchange regime by reflecting a faster and stronger
economic recovery as opposed to Hong Kong (Lim & Jaya, 2010). Nevertheless,
while exchange rate policy could be one factor undermining overall recovery of
the two economies, sound institutional and economic fundamentals are equally
crucial in determining financial stability and growth of the country. While
Singapore seems to adapt well to financial crises, they are not spared from the
effects, as seen from decreased growth and employment. In addition to
monetary policies, both countries need to have strong financial fundamentals
19

and sound macroeconomic policies to ensure that the economy is less vulnerable
to external shocks.
BIBLIOGRAPHY
Allen, F., & Carletti, E. (2009). The Global Financial Crisis: Causes and
Consequences. 1-43.
Anderlini, J. (14 April, 2012). China relaxes currency peg. Retrieved from Financial
Times: http://www.ft.com/intl/cms/s/0/cbe1b5f0-861f-11e1-862600144feab49a.html#axzz2jBm87rrq
Authority, H. K. (2012). The importance of fiscal prudence under the Linked
Exchange Rate System in Hong Kong SAR. Bank for International
Settlements Papers No 67, 173-177.
Bretthaue Brook, Z. T. (2006). A Feminist Analysis of Popular Music: Power Over,
Objectification of, and Violence Against Women. Journal of Feminist Family
Therapy, p29-51, 23.
C, Y., & Lin, Y. (2013). Impact of the 2008 Global Financial Crisis. SpringerBriefs in
Economics 8, 7-16.
Cao, H. (2013). An Analysis of the Hong Kong Economy after the Financial Crisis.
Proceedings of the 7th International Conference on Innovation &
Management, 808-813.
Carbaugh, R. J. (2011). Global Economics (13 ed.). South-Western Cengage
Learning.
Devereux, M. B. (2003). A Tale of Two Currencies: the Asian Crisis and the
Exchange Rate Regimes of Hong Kong and Singapore. Review of
International Economics, 38-54.
Gerlach, S., & Gerlach-Kristen, P. (2006). Monetary Policy Regimes and
Macroeconomic Outcomes: Hong Kong and Singapore. Bank for
International Settlements .
Hamada, K., & Yosuke, T. (December, 2001). The Choice Between Flexible
Exchange Rates Capital Control and the Currency Board in Asian Countries:
A Perspective from the "Impossible Trinity". The Japanese Economic
Review, 52(4), 429-451.
Hong Kong Government. (2013). Hong Kong: The Facts.
Indexmundi. (n.d.). Singapore GDP - composition by sector. Retrieved from
Indexmundi:
http://www.indexmundi.com/Singapore/gdp_composition_by_sector.html
20

Indexmundi. (n.d.) Hong Kong GDP - composition by sector. Retrieved from
Indexmundi:
http://www.indexmundi.com/hong_kong/gdp_composition_by_sector.html
International Monetary Fund. (n.d.). World Economic Outlook Database. Retrieved
18 10, 2013, from International Monetary Fund:
http://www.imf.org/external/pubs/ft/weo/2013/02/weodata/index.aspx
Kawai, M. (2009). The Impact of the Global Financial Crisis on Asia and Asias
Responses. Insights from Asia and Europe AEEF Conference, 1-21.
Lim, M., & Jaya, M. (2010). Financial Liberalization and the Impact of the Financial
Crisis on Singapore . TWN Global Economic Series, 1-51.
Mahinda, S., & Anoma, I. (2003). Effects of the Asian Economic Crisis on
Singapore and Its Policy Responses: A General Equilibrium Analysis.
UNEAC Asia Papers, 1-21.
MAS. (2001). Singapore's Exchange Rate Policy. Singapore: Monetary Authority of
Singapore.
Park, C. Y., Majuca, R., & Yap, J. (2010). The 2008 Financial Crisis and Potential
Output in Asia: Impact and Policy Implications. Asian Development Bank
Working Paper Series on Regional Economic Integration, 1-35.
Rajan, R. S., & Siregar, R. R. (2002). Choice of Exchange Rate Regime: Currency
Board (Hong Kong) or Monitoring Band (Singapore)? Australian Economic
Papers, 538-556.
Ramkishen, R. S., & Siregar, R. (2000). The Vanishing Intermediate Regime and
Tale of Two Cities: Hong Kong Versus Singapore. Centre for International
Economics Studies Policy Discussion Paper, 1-37.
Trading Economics. (n.d.). Export of Goods and Services (% of GDP) in Hong
Kong. Retrieved from Trading Economics:
http://www.tradingeconomics.com/hong-kong/exports-of-goods-andservices-percent-of-gdp-wb-data.html
Tverberg, G. (27 7, 2012). An Optimistic Energy/GDP Forecast to 2050, Based on
Data since 1820. Retrieved from Financial Sense:
http://www.financialsense.com/contributors/gail-tverberg/an-optimisticenergy-gdp-forecast-to-2050-based-on-data-since-1820
Yip, P. S. (2002). A Discussion Note on Hong Kong's Linked Exchange Rate System
and a Proposed Reform of Hong Kong's Wage System. HKCER Letters.
Yip, P. S. (2005). On the Maintenance Costs and Exit Costs of the Peg in Hong
Kong. Economic Growth Centre Working Paper Series.
Young, A. (1992). A Tale of Two Cities: Factor Accumulation and Technical Change
in Hong Kong,
14-2
Zhang, Y., & Tong, S. Y. (2009). Hong Kong's Economy in The Financial Crisis. EAI
Background Brief, 1-20.
21
22

A Tale of Two Exchange Rate Systems: Singapore and Hong Kong. How Well Have Their Respective Monetary/exchange Rate Systems Served Their Economies?

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

A Tale of Two Exchange Rate Systems: Singapore and Hong Kong. How Well Have Their Respective Monetary/exchange Rate Systems Served Their Economies?

Transféré par

Droits d'auteur :

Formats disponibles

A Tale of Two Exchange Rate Systems: Singapore and Hong Kong

ECON 103 International Economics A