The evolution of the Hong Kong currency board during global exchange rate instability, 1967-1973

Hong Kong SAR is well known as one of the few economies to operate a form of currency board as the basis of its monetary system. This system arose out of colonial status and has been retained except for a period of floating from 1975-83 to the present day, with some amendments. This article explores the evolution of the Exchange Fund during a period of global exchange rate instability showing that the abandonment of the monetary anchor in 1975 was part of a series of innovations to the use of the Fund as the colonial government sought to manage the exchange rate risks posed by the collapse of the Bretton Woods system

On the Marginal Cost of Wastewater Services

The purpose of this paper is to analyze the marginal cost of municipal wastewater services. We begin by describing the nature of wastewater services. This is of importance, since the measurement of marginal cost is an activity which requires a specialized knowledge of the engineering and technology of the industry (Turvey, 1969). In the next section, we deal with the relevant definition and interpretation of marginal cost. We then apply our definition to the measurement of marginal cost for a hypothetical, but realistic, wastewater system. In the last section, we make some observations about the design of wastewater tariffs