This paper models the macroeconomic impact from the quot;internationalisationquot; of Hong Kong Dollar under the fixed and floating exchange rate regimes. A three-region model, the Centre, the Periphery and the Rest-of-the-World, is constructed.The present paper finds that, under floating...

This paper estimates the demand for the Hong Kong currency circulating in the Guangdong Province of China and Macau. The amount of Hong Kong Dollar circulating in the Guangdong (Macau) region is reckoned to be 7.4 (3.2) per cent of the total amount issued in Hong Kong. The estimated coefficients...