This working paper was written by Shuang Jin (Hong Kong Monetary Authority).Using financial disclosure of listed firms in Hong Kong from 2003 to 2016, this paper investigates the investment response of Mainland firms to the low-for-long interest rate environment after the Global Financial Crisis...

This working paper was written by Ka-Fai L (Hong Kong Monetary Authority), Cho-Hoi Hui (Hong Kong Monetary Authority) and Tsz-Kin Chung (Hong Kong Monetary Authority).Price disparities between the renminbi onshore deliverable forward and offshore non-deliverable forward exchange rates is an...

This working paper was written by Amar Gande (Vanderbilt University) and David Parsley (Vanderbilt University).We study the effect of a sovereign credit rating change of one country on the sovereign credit spreads of other countries for 155 ratings change events from 1991 to 2000. We find...

This working paper was written by Cho-Hoi Hui (Hong Kong Monetary Authority) and Tsz-Kin Chung (Hong Kong Monetary Authority).The economic-political instability of a country, which is tied to its credit risk, often leads to sharp depreciation and heightened volatility in its currency. This paper...

This working paper was written by Ana Fernandes (University of Sussex) and Heiwai Tang (Tufts University and Centro Studi Luca d'Agliano).This paper uses detailed product-level export data for China and proposes an extension of the Antràs and Helpman (2004) framework that includes investments...

This working paper was written by Dudley Cooke (Trinity College Dublin).I develop a two country general equilibrium model with heterogeneous price-setting firms to understand how shocks to monetary policy and aggregate labor productivity impact trade integration, which I capture through the...

This working paper was written by Ronald McKinnon (Stanford University) and Gunther Schnabl (Tübingen University).Rapidly growing Chinese exports are middle-tech––and increasingly high-tech––manufactured goods. China runs a huge and growing bilateral trade surplus with the United...

This working paper was written by Yin-wong Cheung (University of California, Santa Cruz), Kon S. Lai (California State University, Los Angeles) and Michael Bergman (Lund University).The conventional view, as expounded by sticky-price models, is that price adjustment determines the PPP reversion...

This working paper was written by Yin-wong Cheung (University of California).The article examines the Hong Kong export performance. A standard export demand formulation is used as the benchmark. Then, we investigate the effects of real exchange rate volatility, “third” country competition,...

This working paper was written by Juan Carlos Martinez Oliva (Bank of Italy).In view of the debate on exchange rate stabilization in Asia, this paper introduces a new and original approach to the determination of equilibrium real exchange rates (ERER) across ASEAN+3. Existing literature usually...