Discussion On The Arrangement Of "Linked Exchange Rate System" In Hong Kong

No matter which economical system, "Monetary system" can be one of the most important lessons for argument forever. To be one of thesuccessful systems....."Linked Exchange Rate System ", it has beenrunning for over 18 years and faced on different situations.Before 1997, there is the blooming period in Asia, but hidden a big tragedy, the adventurer from all over the world made their focus on there long ago. Finally they began to chase the money of Thailand on July of 1997 and the Baht was beginning to fall down. Fortunately, Hong Kong protects the "Linked Exchange Rate System" to be the first responsibility that kept the safety of Economy and Society of Hong Kong.But to be one important part of Asia, Hong Kong had suffered a little hurt either. The statistics of the Government showed that the economy of Hong Kong had been attack at this incident. For example are ?"The number of Production" /'Import/Export Rate" and the "Unemployment Rate".Today, in 2002, the economical statistics showed that we didn't have the big improvement yet. The "Unemployment Rate" still stood on the high level. But on the other side we could see that the nations of Asia began to recover, so the doubtful of "Linked Exchange Rate System" from the Hong Kong People appeared. Further more, there had been suggested to use "Floating exchange rate system" for stead of by some scholars.This paper discusses the good and the bad points for continue using the "Linked Exchange Rate System" in Hong Kong. And according to the truth to compare "Fixed exchange rate system" and "Floating exchange rate system", which system is more suitable for Hong Kong.At the end of the paper I also think about the prospect of Hong Kong 's Monetary System.