Hong Kong – Financial Crisis In The Case Of Hong Kong: Last In, Last Out?

The following sections are included:INTRODUCTIONASIAN ECONOMIES IN CRISIS — A BRIEF LITERATURE REVIEWAnalytical Framework and FocusGlobalization of Asian Financial Market: Imperfections and Speculative ActivitiesBACKGROUND OF THE 1997 FINANCIAL CRISIS IN THE HONG KONG ECONOMYHong Kong's Linked Exchange Rate Regime Since 1983The Pre-Crisis Economic Situation: A Service-Dominating EconomyThe Pre-Crisis Asset BubblesTHE HONG KONG VERSION OF 1997–98 FINANCIAL CRISIS: A CONCEPTUAL FRAMEWORKCauses of the CrisisSoaring Interest Rate: Effects on Banking System and Real EconomyPERFORMANCE OF THE ECONOMY DURING 1997/98GOVERNMENT POLICIES: MANAGING THE CRISIS AND STRUGGLING FOR RECOVERYThe Changing Philosophy of Governmental Economic PoliciesCrisis ManagementCrisis Management During the First Period (10/1997–3/1998)Crisis Management During the Second Period (8–9/1998)Monetary Policy Measures and Reforms in the Banking InfrastructureFiscal Policy Designed for Economy RecoveryCONCLUSION REMARKSReferencesAppendix I Listings of Major Chronological Events in Hong Kong Following the Outbreak of the Asian Financial CrisisAppendix II Major Policy Addresses by Hong Kong Government in 1999: Toward the Road of RecoveryTo Establish High Value-Added and Competitive IndustriesPromote Innovation and TechnologyMaximize Access to Hi-Tech ProductsDevelop a World-Class InfrastructureProvide Support for SMEsInfrastructural/Transportations FacilitiesTo Strengthen Hong Kong's Role as International Financial CenterMaintenance of Monetary and Banking StabilityImprovement of the Regulatory FrameworkInfrastructure for a First Class International Financial CenterSpearhead the Further Development of the Financial MarketTo Enhance Local Business Friendly EnvironmentCreation of a Friendly Business EnvironmentCommission Studies and Devise Detailed ArrangementsImprovement of Business EnvironmentAwareness of Improvement to Business CommunityAppreciation of the Needs of Business CommunityTo Build Hong Kong as a Pre-Eminent Services CenterStrategic Thinking on Future DevelopmentStrengthen Institutional SupportImplement Industry-Specific InitiativesTo Maintain Prudent Management of Public FinancesPrudent and Cost-Effective Government Expenditure GrowthMaintain an Effective Revenue Collection and Protection SystemProvide Sources of Government FinanceTo Enrich Hong Kong as a Key Tourist DestinationDevelop and Improve Tourism Infrastructure and FacilitiesImprove the Quality of Service of the Tourism IndustryPromote Hong Kong as an Attractive Tourist Destination