Advanced statistical techniques are used to analyze Hong Kong output dynamics. Hong Kong, Japan and the U.S. are found to share some common long-term and short-term cyclical variations. While the Hong Kong economy is susceptible to external shocks and Granger-caused by the other two economies,...

This paper analyzes trend and cycle movements of Hong Kong inflation. The empirical model is an unobserved components model that is consistent with the New Keynesian Phillips curve and is estimated using Hong Kong, U.S., and China inflation and output data. The model decomposes Hong Kong...