Subject category:
Finance, Accounting and Control
Published by:
NACRA - North American Case Research Association
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Abstract
Joseph Yam, the Head of the Hong Kong Monetary Authority during the Asian financial crisis, must decide what action to take regarding speculators against the Hong Kong dollar. Government actions against speculators to date have differed from the laissez faire practices that had been the hallmark of pre-handover Hong Kong. Now, he must determine whether to restrict the swap markets that could provide speculators with Hong Kong dollars. What is the impact of the speculators and the potential policy alternatives? To answer this, he must understand swap pricing, comparative advantage in segmented markets, and the meaning of market efficiency.
Subject category:
Finance, Accounting and Control
Published by:
NACRA - North American Case Research Association
Length: 17 pages
Data source: Field research
About
Abstract
Joseph Yam, the Head of the Hong Kong Monetary Authority during the Asian financial crisis, must decide what action to take regarding speculators against the Hong Kong dollar. Government actions against speculators to date have differed from the laissez faire practices that had been the hallmark of pre-handover Hong Kong. Now, he must determine whether to restrict the swap markets that could provide speculators with Hong Kong dollars. What is the impact of the speculators and the potential policy alternatives? To answer this, he must understand swap pricing, comparative advantage in segmented markets, and the meaning of market efficiency.
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Subject category:
Finance, Accounting and Control
Published by:
NACRA - North American Case Research Association
Length: 17 pages
Data source: Field research