Skip to main content
Volatility of fundamental variables under different exchange rate system : a simple test for Hong Kong
Applied Economics
  • Jimmy RAN, Lingnan University, Hong Kong
Document Type
Journal article
Publication Date
This paper presents a comparison in the changes of Hong Kong macroeconomic fundamental variables before and after its currency was 'pegged' to the US dollar in October 1983. Using a simple method from Flood and Rose (1995) and Baxter and Stockman (1989), this paper compares the volatilities of all aggregate variables used by those investigators in so far as these data are available for Hong Kong. The results show, contrary to the dominating empirical literature for the G-7 countries, that the volatilities of more than half of the nominal and real variables under the float are significantly higher than those under the link.
Publisher Statement

Copyright © 2002 Taylor & Francis Ltd

Access to external full text or publisher's version may require subscription.

Full-text Version
Publisher’s Version
Citation Information
Ran, J. (2002). Volatility of fundamental variables under different exchange rate system: A simple test for Hong Kong. Applied Economics, 34(2), 253-258. doi: 10.1080/00036840110036288