1/11/18:
The wind tousled around my hair, temporarily distracting me from the fact that my left ear is currently 2 shades redder than my right one. My mom always told me that when your ears heat up, it means someone’s thinking of you. Jake tells me it’s because I’m about to get a cold. In a linked exchange rate system, the currency is kept stable by interest rates. When there’s a shortage of US dollars to create Hong Kong dollars from, banks will inflate interest rates as they are more averse to lending. And, as interest rates increase, foreign investors will put US currency back into the hands of the banks in the hopes of making a quick buck. For some reason, this equilibrium feels particularly relevant right now. But I digress. I think that there are major advantages of having a linked currency for a capitalist city ruled by a socialist country. The Hong Kong dollar gives the rest of the world greater access to investment opportunities in China while protecting its from the inflations and regulations of a less stable currency. It’s certainly better than using just USD or RMB in my eyes.
As I wrap up this post, my left ear returns to its regular state. Is this a coincidence? I think not.
