HBP Case Study: What alternative course of action could the Government have taken?
HBP Case Study: What alternative course of action could the Government have taken?
Read the HBP Case and answer the following questions. Your answers should be thorough and detailed.
1. What alternative course of action could the Government have taken?
2. What measures can be taken to improve the self-regulating framework of the peg to prevent further speculation against the Hong Kong dollar?
3. To what extent should the Government intervene in the market to stabilize the economy?
4. Is there a conflict of interest in the Government’s regulatory role in various key industries now that it has a major stake in them?
5. Has the Government established a dangerous precedent by establishing itself as a buyer of last resort? What will happen should it decide to divest the shares in its portfolio?
Asian financial crisis HBP case
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