04590oam 22010334 450 991078822330332120230721045708.01-4623-3154-897866128445081-4527-3391-01-4518-7402-21-282-84450-4(CKB)3170000000055387(EBL)1605978(SSID)ssj0000942154(PQKBManifestationID)11505494(PQKBTitleCode)TC0000942154(PQKBWorkID)10971278(PQKB)10849021(OCoLC)680613486(MiAaPQ)EBC1605978(IMF)WPIEE2009256(EXLCZ)99317000000005538720020129d2009 uf 0engur|n|---|||||txtccrMacroeconomic Implications for Hong Kong SAR of Accommodative U.S. Monetary Policy /Papa N'DiayeWashington, D.C. :International Monetary Fund,2009.1 online resource (30 p.)IMF Working PapersDescription based upon print version of record.1-4519-1817-8 Includes bibliographical references.Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Implications for Hong Kong SAR of U.S. Monetary Policy; A. The Fed's Unconventional Monetary Policy Actions; B. Impact on Hong Kong SAR; III. A Simulation of Hong Kong SAR Asset and Goods Markets When Confronted by an Accommodative U.S. Monetary Stance; A. Model Overview; B. Model Simulations; IV. Conclusions; References; FootnotesThis paper discusses the potential macroeconomic implications for Hong Kong SAR of accommodative monetary policy in the United States. It shows, through model simulations, that a resumption of the credit channel in Hong Kong SAR has the potential to create inflation in both goods and asset markets. Expansionary financial conditions will likely have a greater impact in fueling asset price inflation, manifested in the model through a strong increase in equity prices. Higher asset prices could, in turn, through a financial accelerator mechanism, lead to further credit expansion and an upward cycle of asset prices and credit. This cycle, if unchecked, can potentially feed into volatility in consumption, output and employment and complicate macroeconomic management. The simulation results suggest there is a role for countercyclical prudential regulations to mitigate the amplitude of the cycle and lessen the financial and macroeconomic volatility associated with an unwinding of the credit-asset price cycle.IMF Working Papers; Working Paper ;No. 2009/256Monetary policyUnited StatesEconomicsChinaHong KongInflationimfLaborimfMacroeconomicsimfMoney and Monetary PolicyimfPublic FinanceimfPrice LevelimfDeflationimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfFiscal PolicyimfLabor DemandimfMonetary economicsimfLabourimfincome economicsimfAsset pricesimfCreditimfFiscal policyimfSelf-employmentimfPricesimfSelf-employedimfHong Kong Special Administrative Region, People's Republic of ChinaimfMonetary policyEconomicsInflationLaborMacroeconomicsMoney and Monetary PolicyPublic FinancePrice LevelDeflationMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralFiscal PolicyLabor DemandMonetary economicsLabourincome economicsAsset pricesCreditFiscal policySelf-employmentPricesSelf-employedN'Diaye Papa1509571International Monetary Fund.DcWaIMFBOOK9910788223303321Macroeconomic Implications for Hong Kong SAR of Accommodative U.S. Monetary Policy3741537UNINA