TY  - BOOK
AU  - Liang,Hong
TI  - Do Hong Kong SAR and China Constitute An Optimal Currency Area? An Empirical Test of the Generalized Purchasing Power Parity Hypothesis
T2  - IMF Working Papers; Working Paper
SN  - 1451850182 :
SN  - 1018-5941
PY  - 1999///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Cointegration
KW  - imf
KW  - Exchange Rate
KW  - Exchange Rates
KW  - Generalized Purchasing Power Hypothesis
KW  - Optimal Currency Union
KW  - Real Exchange Rate
KW  - Hong Kong Special Administrative Region of China
N2  - The paper explores the behavior of the long-run real exchange rate (RER) of Hong Kong SAR and China by testing the generalized-purchasing power parity hypothesis (G-PPP). The hypothesis argues that if the fundamental variables determining RERs are sufficiently integrated, as in a currency area, the RERs should share common trends. The findings of this study suggest (1) at present, Hong Kong SAR and China do not satisfy the conditions necessary for forming an optimal currency area by themselves; (2) when Japan and the United States are added to the group, common trends can be found; and (3) the long-run elasticity between the RERs of Hong Kong SAR and China is negative
UR  - http://elibrary.imf.org/view/IMF001/01803-9781451850185/01803-9781451850185/01803-9781451850185.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451850185
ER  -