[eng] Are currency boards effective ? The case of Hong Kong . Because Hong Kong leaved then adopted again a currency board arrangement, it allows analysing macroeconomic impacts of this exchange rate regime. Author's empirical tests show that the impacts of supply chocks are less strong than...

The paper discusses the historical background and institutional details of Hong Kong's currency board. We argue that its experience provides a good opportunity to test the macroeconomic implications of the currency board regime. Using the method of Blanchard and Quah (1989), we show that the...