Hong Kong
Overview
16-
H.K used to small fishing village where 7000 people lived in China. Since the Opium War has finished in a victory for U.K. And then H.K became famous city in the world as a colony. After that H.K has been made a trading country for extension to east asia by U.K. At first they focused on labor intensive industry and continuously increased rate of the export labor i
services sector than in industry. By contrast, growth in output and TFP in agriculture has slowed.
ⅱ) Macroeconomic policies
a) Monetary policy
8. The objectives of monetary policy in India are to maintain price stability and ensure adequate flow of credit to the productive sectors of the economy.
9. Once the inflationary pressure has risen, RBI(Reserve Bank of India) raise interest rates.
2) Managing external debt using sustainability indicators
External debt management involves balancing resource mobilization and deployment as well as orderly repayment of future obligations. For sustainable debt management, policy makers need to project accurate debt dynamics that are sensitive to the way the current account deficits are being financed. If borrowed resources are not used produ
non-discretionary impacts
Discretionary fiscal stimulus
Asian Development Bank (2009a) also notes that a country's ability to withstand shocks depends on a set of variables that may either amplify or absorb them.
Countries with strong macroeconomic fundamentals would be better able to withstand or absorb shocks, and those with weak and narrower financial systems, less so.
The main causes of downturn after 1995 –
A slump in export earning
The weakening of the yen
The end of equipment and infrastructure investment boom
High wages, high interest rate and high land prices
Won appreciation in1994-95 ↑
A loss of international competitiveness
Won devaluation in 1996 ↓
competitiveness improvement