The need of attracting more people to employment would imply in many countries a “re-thinking” about the current mix of tax and benefit systems, which continue to provide disincentives to take up work or to work longer hours. Furthermore, measures to make wage growth reflect more strongly regional and sectoral productivity differences would certainly be helpful. The European Central Bank strongly welcomes these proposals.
Given Hong Kong’s role as an international financial centre, it is natural for the international investment community to be interested in the future of Hong Kong. I am grateful to Governor George for giving me this opportunity to share with this distinguished audience the Chinese Government’s policy on the monetary relationship between the mainland of China and Hong Kong after 1997.