Comparison between Hong Kong and the United States’ economic variables: inflation rate, interest rate and unemployment rate

A pegged exchange rate system is one that involves the currency of one economy linking to the currency of another. The Hong Kong dollar is pegged to the US at a rate of $7.8 HK to $1 US. There have been differing opinions by researchers concerning whether or not Hong Kong should remain pegged to the US. Various researchers’ papers were read and summarized along with gathering interest, inflation and unemployment rates for the last ten years in order to show the relationship between the two economies. The resulting information showed that there is a positive correlation between the two economies and how these economic variables fluctuate, while maintaining that there are other factors at play that a role also.