The Hong Kong Monetary Authority has completed a research study on the setting of mortgage rate by Authorized Institutions (AIs). The purpose of the project is to consider whether in an environment of intensive competition and, until recently, abundant liquidity in the banking system, the AIs...

While the relationship between volatility and risk is central to much of thefinancial literature it has not been incorporated systematically into assessment ofsovereign debt sustainability. This paper attempts to fill this gap by studying how the probability distribution of sovereign debt to GDP...

The enlargement of the EU will eventually lead to an enlargement of the Euroarea. Since the accession countries are economically very small, the implications for the ECB will be limited to its decision-making structure. I argue that the enlargementrepresents an opportunity for the ECB to adjust...

This paper extends Galí and Gertler’s (1999) new hybrid KeynesianPhillips curve to the open economy context. We hypothesise that pricing decisionsdepend on both labour costs and intermediate imported input prices. The results forHong Kong are consistent with the theory if import prices are...

Financial integration in Ease Asia is actively being pursued and will in due course lead to substantial mobility of capital between economies in the region. Plans for monetary cooperation as a prelude to monetary integration and ultimately monetary unification are also proposed. These plans...

Devisenkursbewegungen und internationale Inderdependenz von Aktienmärkten In diesem Beitrag werden Verbindungen zwischen Aktien- und Devisenkursbewegungen untersucht. Im ersten Teil zeigt eine empirische Untersuchung für sieben Industrieländer auf der Grundlage von Daten ab 1974 eine Reihe...

This paper reviews the performance of the Hong Kong dollar Linked Exchange Rate system since the introduction of the three refinements to it in May 2005. It presents an analytical framework which argues that, in a fully credible exchange rate target zone regime, the spot exchange rate normally...