I am delighted to be here. I did not realize there were so many monetary experts in the world. But if there are, they’re all here as I can see from the faces I can see and recognize. The subject of “Do we need a central bank” was suggested to me. It is a topic I have been interested in.
The experience of Hong Kong clearly indicates that a particular country like Hong Kong does not need a central bank. Indeed it has been very fortunate that it has not had one. The currency board system that was introduced in 1983 has worked very well for HK and I believe it is desirable that it be continued. I gather that it was a pure currency board from 1983 to 1988, and then some changes were made which tended to move in the direction of converting the currency board into a central bank. That is a mistake and I hope it did not and will not go too far.