This paper revisits the question whether economies in Asia are likely to be good candidates for pursuing similar exchange rate policies and ultimately joining together in a monetary union. A number of authors have investigated this question before typically using some variant of the methodology...

This paper examines how external factors have influenced the evolution of prices and interest rates in Switzerland in the period from 1964 to 1981. The importance of the exchange-rate regime for both the degree of dependence of the Swiss economy on foreign shocks and the transmission mechanisms...

This paper reviews the literature on alternative exchange-rate arrangements for a small economy. It discusses exchage-rate management for short-run stabilization purposes and the choice of exchange-rate regimes to foster policy discipline. Recent research has emphasized that the appropriate...

We provide empirical evidence on the dynamics of prices and wages in Hong Kong. The results suggest that the post-1997 deflation can be understood using a conventional macroeconomic framework wherein foreign influences constitute the basic underlying shocks, and adjustment processes in domestic...

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...

This paper develops a multivariate time series model to forecast output growth and inflation in the Hong Kong economy. We illustrate the steps involved in designing and building a vector autoregression (VAR) forecasting model, and consider three types of VAR models, including unrestricted,...