Currency substitution and speculative attacks on a currency board system

Domino Effects Within a Housing Market: The Transmission of House Price Changes Across Quality Tiers

“…Confounding the analysis of the impact of the TPS was the advent of the Asian financial crisis (AFC), this beginning in the third quarter of 1997 (Tsang and Ma 2002). We expect that increased uncertainty about the HK-US dollar link would discourage purchase of HK dollar denominated assets, particularly homes, and thus reduce turnover.…”

External Shocks, Balance Sheet Contagion, and Speculative Attack on the Pegged Exchange Rate System

“…This will maintain the domestic money market in equilibrium. On the other hand, equation (6) shows that a rise in domestic interest rate will attract the foreign capital inflow, that is the "specie-flow" mechanism (Tsang and Ma, 2002). Thus the foreign exchange reserve is built up to alleviate the pressure of exchange rate devaluation.…”

“…(1996) who endogenized the government exchange rate policy with an “escape clause.” The government has a trade‐off between the fixed exchange rate and domestic macroeconomic objectives (Ma and Kanas, 2000). McKinnon and Pill (1999), Chang and Velasco (2001), Tsang and Ma (2002), and Ma et al. (2007) are the representative third‐generation models cast in the background of the Asian financial crisis.…”

“…The government has a trade-off between the fixed exchange rate and domestic macroeconomic objectives (Ma and Kanas, 2000). McKinnon and Pill (1999), Chang and Velasco (2001), Tsang and Ma (2002), and Ma et al (2007) are the representative third-generation models cast in the background of the Asian financial crisis. Following Diamond and Dybvig (1983), these models put an emphasis on the fragility of the domestic financial system and premature financial liberalization as the causes of currency crisis.…”

International interest rates and US monetary policy announcements: Evidence from Hong Kong and Singapore

“…However, one major difference between these two economies is their exchange rate policy. In fact, since October 1983, the date when Hong Kong has adopted a fixed exchange rate arrangement, the two economies experience opposite exchange rate regimes (see, inter alia, Latter, 1993;Cheung, 1998;Tsang and Ma, 2002;Cheung and Yuen, 2002; and the references therein). Thus, Hong Kong and Singapore provide us with an ideal setting to test, from a new perspective, the familiar 'impossible trinity' textbook proposition, i.e.…”