Xinhua Gu
Author information
Faculty of Business Administration, University of Macau, Macao, China
E-mail: xinhuagu1@yahoo.ca
Abstract
The prolonged RMB appreciation affects Macao deeply and requires a major monetary reform without further delay. What we propose for Macao reform as an optimal choice includes shifting its monetary anchor to the strong RMB, revaluing its domestic currency to the original level, and setting up a sovereign wealth fund for autonomous growth. This proposal is based on Macao’s economic fundamentals such as trade competitiveness, business relations, real welfare, monetary stability, and genuine development. We also recommend a monetary union of Macao with Hong Kong as the 2nd-best choice of reform by introducing what we term the SAR dollar.
monetary reform , Macao , Hong Kong , the Mainland of China
Xinhua Gu. A Synthesized Discussion on the Macao Monetary Reform. Front Econ Chin, 2010, 5(4): 604‒621 https://doi.org/10.1007/s11459-010-0115-z