GTAP Resources: Resource Display
GTAP Resource #287 |
---|
"The China Money Puzzle: Will Devaluation of the Yuan help or Hurt the Hong Kong Dollar?" by Wei, S, L Liu, Zhi Wang and W Woo Abstract A Chinese yuan devaluation could affect the stability of the Hong Kong dollar. This paper studies two linkages. The first, trade balance effect is studied through a CGE model. The result shows that the net change in Hong Kong's foreign reserve after a yuan devaluation is in fact negligible. The second, psychological effect is studied by a survey of financial market participants. In spite of the small trade balance effect, all respondents believe that a yuan devaluation would lead to a panic selling of Hong Kong assets. Therefore, a yuan devaluation is bad for Hong Kong dollar primarily through market psychology. |
Resource Details (Export Citation) | GTAP Keywords | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
- Asia (East) |
Attachments |
---|
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access ![]() Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
Comments (0 posted) |
---|
You must log in before entering comments.
No comments have been posted. |
Last Modified: 9/15/2023 1:05:45 PM