Hong Kong is fast emerging as a test case of the global tightening cycle

Forced to import the monetary policy of the US Federal Reserve – nolens volens – as a result of its long-standing exchange link to the US dollar.

 Victim of the "Impossible Trinity”: you cannot control the currency, and monetary policy, and have open capital flows. 

 In times of stress, one must give.

 Ambrose Evans-Pritchard Telegraph 26 March 2018



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