01701cas a2200241 a 4500 AALejournalIMF002340 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451850017 1018-5941 BD-DhAAL BD-DhAAL Schellekens, Philip. Deflation in Hong Kong SAR / Philip Schellekens. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the causes of deflation in Hong Kong SAR, exploring whether it reflects a prolonged process of adjustment to cyclical shocks or whether it results from price equalization pressures arising from structural integration with mainland China. To gauge the relative importance of these factors, the paper provides both an econometric and a qualitative analysis of the price dynamics between Hong Kong SAR and Shenzhen, a neighboring city in mainland China. It finds that the role of price equalization as a source of deflation is minor. Deflation in Hong Kong SAR is best explained by successive cyclical shocks which have been amplified by balance-sheet and wealth effects. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2003/077 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/077/001.2003.issue-077-en.xml IMF e-Library