I believe that nobody will wish to miss such an opportunity. Mr Tsang has just expressed his views on the economy of Hong Kong before and after 1997. I would like to say a few words from the perspective of the People’s Bank of China (PBOC).
I think this artificially low discount rate may have held down the funds rate, leading to the overly expansionary monetary policy amply documented by John Taylor. It was obvious to virtually all economists that the country needed a permanent budget shift as Vietnam spending increased, but what came out of that was a delayed temporary tax increase.