C/E/107. Describe how Hong Kong’s currency board system works and outline advantages and disadvantages of it

This essay describes the currency regime that has been adopted by Hong Kong in 1983. The regimes was designed quickly and most of the economists though that it will not last more the 6 months. However, not only the regime lasted until the present day but also it has solved the financial and banking crises in the economy. China was seen as a threat to the regime, due to the change of the sovereign body, however the autonomy of Hong Kong was preserved. The essay outlines a large number of advantages and disadvantages and concludes that despite the disadvantage the bottom line is that it works and has done a lot of good to the economy, therefore it should be maintained.