J
3
themselves. In these circumstances the government has no control over the quantity "h" in your exposition and so there is no way in which the government could have put a limit on
on the exchange rate. Either way, therefore, the system would not allow the government to hold the rate. That is why, in the face of destabilising prices in the principal market, the government altered the system last October.
In the above respect I consider your approach to be fundamentally flawed, so that the conclusions about government motives become even more fantastic.
If you agree with any of this, then perhaps you may find some opportunity to set the record straight. If you or
either of your co-authors are ever in Hong Kong
again,
one of my colleagues would be pleased to continue the dialogue.
+
Yours sincerely,
(A.R.
ау
Latter)
Deputy Secretary for Monetary Affairs
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