The natural rate of interest of Hong Kong

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

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Original languageEnglish
Pages (from-to)44-54
Number of pages11
Journal / PublicationPacific Economic Review
Volume29
Issue number1
Online published26 Apr 2023
Publication statusPublished - Feb 2024

Abstract

We measure the natural rate of interest of Hong Kong in a flexible VAR model. We find that the natural rate of interest of Hong Kong fell below zero after the SARS shock in 2003 and reached the lowest after the great recession in 2007–2009. Variance decomposition shows that mainland China, instead of the USA, has a larger impact on the natural rate of interest of Hong Kong. ©2023 John Wiley & Sons Australia, Ltd.

Citation Format(s)

The natural rate of interest of Hong Kong. / He, Yunlu; Wang, Bin.
In: Pacific Economic Review, Vol. 29, No. 1, 02.2024, p. 44-54.

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review