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Intervention to Save Hong Kong Rob Zachariason questions of classBy August 1998, the Hong Kong economy had become threatened not only by the natural consequences of the Asian crisis (1997 8), but also by waves of speculation, betting that the authorities would be forced to abandon the linked exchange rate (to the US dollar). When facing previous speculative attacks (starting October 1997), the authorities had followed traditional policies of raising interest rates. But, by August 1998, such policies had helped to
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