Analysis of Hong Kong Dollar in a Changing Economic Environment

DOI

10.2991/aebmr.k.210319.086How to use a DOI?

Keywords

Hong Kong Dollar, fixed exchange rate system, U.S.Dollar, US-China relationship

Abstract

Many people have begun to reconsider the linkage of Hong Kong’s currency, the Hong Kong Dollar, to the U.S. Dollar under the historically great tension in US-China relationships and the underlying conflict between two of the world’s biggest economies. There are many different policy candidates advocated by economists to replace the current system. This paper concludes that the HKD is likely to continue its peg with USD as great costs, as risks are imposed with this fundamental change, and benefits of the other options are not strong enough to support the change. Comparison and contrast analysis is used in this research to determine the possible benefits and drawbacks of certain monetary policies, as alternatives to the current fixed exchange rate system in Hong Kong. It is important to understand the possible outcomes of this change on a monetary basis as policymakers decide the measurements to adjust the current system to adapt to the changing economic environment.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Dihua Fang
PY  - 2021
DA  - 2021/03/22
TI  - Analysis of Hong Kong Dollar in a Changing Economic Environment
BT  - Proceedings of the 6th International Conference on Financial Innovation and Economic Development (ICFIED 2021)
PB  - Atlantis Press
SP  - 474
EP  - 478
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210319.086
DO  - 10.2991/aebmr.k.210319.086
ID  - Fang2021
ER  -