Q1: Any improvement for this research?
A1: Consider the effect of exchange rate of HKD against other countries’ currencies e.g. Japanese Yen on Hong Kong CPI.
Q2: Do you think Hong Kong dollar should link with RMB in order to stabilize the price of imported Mainland goods?
A2: No. The US dollar remains the most important international reserve currency as well as the main currency in which financial and trade transactions are denominated and settled. These roles can hardly be replaced by RMB overnight.
Q3: Do you think the exchange rate effect on imported price will keep decreasing in the future?
A3: Yes. Because online shopping will become more popular, which enhances substitution effect.