Monetary Problems of an Entrepot

This treatise is to provide a historical and analytical study of Hong Kong as an entrepot prior to World War II in terms of her choice of monetary standard, the relationship between exchange rates and prices, and the supply of money. This study is applicable to two larger contemporary theoretical and empirical issues: The theory of choice of a monetary standard by a particular economy such as a developing country and the empirical verification of the transmission of price movements from one country to another via the exchange rate.