Currency Crisis in the United Kingdom and Hong Kong

19 Pages Posted: 30 May 2017 Last revised: 10 Nov 2021

See all articles by Francis E. Warnock

Francis E. Warnock

University of Virginia - Darden Business School; National Bureau of Economic Research (NBER)

Abstract

This case reviews different varieties of currency crises and two in particular: United Kingdom in 1992 and Hong Kong in 1998. These were two very different types of crises, and understanding them could serve the protagonist well when future crises occurred.

Excerpt

UVA-GEM-0108

Rev. Feb. 8, 2018

Currency Crises in the United Kingdom and Hong Kong

As Arturo Rodrigo was riding the early morning Metro North train from Manhattan to Greenwich, Connecticut, in late December 2010, his thoughts turned to past currency crises. At this point, most emerging markets were struggling to contain the appreciation of their currencies, so perhaps currency crises were not likely in the foreseeable future. But Rodrigo knew conditions could change quickly, so during this quiet holiday season, he would take advantage of the luxury of thinking through issues in relative calm. In another week or so, his days would be too full for proper thinking.

Rodrigo set about to refresh his knowledge of currency crises in general, and two specific crises: United Kingdom in 1992 and Hong Kong in 1998. These were two very different types of crises, and understanding them could serve him well when future crises occurred.

Fixed Exchange Rates: The Pros and Cons

. . .

Keywords: currency crises, British pound, Hong Kong dollar, ERM, Asian financial crisis

Suggested Citation

Warnock, Francis E., Currency Crisis in the United Kingdom and Hong Kong. Darden Case No. UVA-GEM-0108, Available at SSRN: https://ssrn.com/abstract=2974621 or http://dx.doi.org/10.2139/ssrn.2974621

Francis E. Warnock (Contact Author)

University of Virginia - Darden Business School ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-6076 (Phone)

HOME PAGE: http://faculty.darden.virginia.edu/warnockf/index.htm

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138-5398

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