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Pegged Exchange Rate Systems in Macau and Hong Kong

Author

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  • Robert Haney Scott

    (University of Macau, Macau)

Abstract

Macau pegs its currency, the pataca, to the Hong Kong dollar, which in turn is pegged to the U.S. dollar. This type of pegging order is unique in the annals of international financial arrangements. This article analyzes the structure of the pegged exchange rate systems in Macau and Hong Kong and discusses the financial and economic implications of these systems for the two territories.

Suggested Citation

  • Robert Haney Scott, 1997. "Pegged Exchange Rate Systems in Macau and Hong Kong," Multinational Finance Journal, Multinational Finance Journal, vol. 1(2), pages 153-168, June.
    • Handle: RePEc:mfj:journl:v:1:y:1997:i:2:p:153-168
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    References listed on IDEAS

    as
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    5. Terence C. Mills & Geoffrey E. Wood, 1993. "Does the exchange rate regime affect the economy?," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 3-20.
    6. Owen F. Humpage & Jean M. McIntire, 1995. "An introduction to currency boards," Economic Review, Federal Reserve Bank of Cleveland, issue Q II, pages 2-11.
    7. John Williamson, 1995. "What Role of Currency Boards?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa40, April.
    8. Goff, Brian L & Toma, Mark, 1993. "Optimal Seigniorage, the Gold Standard, and Central Bank Financing," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(1), pages 79-95, February.
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    Cited by:

    1. Unro Lee, 1997. "Stock Market and Macroeconomic Policies: New Evidence from Pacific Basin Countries," Multinational Finance Journal, Multinational Finance Journal, vol. 1(4), pages 273-289, December.
    2. Jorge Braga de Macedo & José Braz & Luis Brites Pereira & Luis C. Nunes, 2006. "Exchange market pressure and the credibility of Macau's currency Board," Nova SBE Working Paper Series wp492, Universidade Nova de Lisboa, Nova School of Business and Economics.
    3. He, Ling T., 2001. "Time variation paths of international transmission of stock volatility -- US vs. Hong Kong and South Korea," Global Finance Journal, Elsevier, vol. 12(1), pages 79-93.

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    More about this item

    Keywords

    currency board system; currency substitution; pegged exchange rates; seigniorage;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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