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Financial Deepening and Economic Growth in Select Emerging Markets with Currency Board Systems: Theory and Evidence

Author

Listed:
  • Qiu, Yujuan

    (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise)

Abstract

This paper investigates some indicators of financial development in select countries with currency board systems and raises some questions about the connection between financial development and growth in currency board systems. Most of those cases are long-past episodes of what we would now call emerging markets. However, the paper also looks at Hong Kong, the currency board system that is one of the world’s largest and most advanced financial markets. The global financial crisis of 2008-09 created doubts about the efficiency of financial markets in advanced economies, including in Hong Kong, and unsettled the previous consensus that a large financial sector would be more stable than a smaller one.

Suggested Citation

  • Qiu, Yujuan, 2017. "Financial Deepening and Economic Growth in Select Emerging Markets with Currency Board Systems: Theory and Evidence," Studies in Applied Economics 87, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    • Handle: RePEc:ris:jhisae:0087
    as

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    References listed on IDEAS

    as
    1. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 717-737.
    2. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    3. Hanke, Steve & Bushnell, Charles, 2016. "Venezuela Enters the Record Book: The 57th Entry in the Hanke-Krus World Hyperinflation Table," Studies in Applied Economics 69, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    4. Culp, Christopher & Hanke, Steve & Greenwood, John, 2013. "The Hong Kong Linked Rate Mechanism: Monetary Lessons for Economic Development," Studies in Applied Economics 6, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise, revised Jun 2013.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    banks; currency board; financial deepening; growth;
    All these keywords.

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models

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