After the literature review of unemployment, I found that few articles invested on Hong Kong's economy. This research aims to investigate the Hong Kong?s economy. Hong Kong owns some special economies when comparing with the counterparts. For example, in terms of monetary system, the inflation rate and interest rate of Hong Kong follows the USA due to the execution of the Linked Exchange Rate system , which has been in existence since 17 October 1983, is the cornerstone of Hong Kong?s financial system. Under the Linked Exchange Rate system, the Hong Kong dollar is officially linked to the US dollar at the rate of 7.8 Hong Kong dollars to one US dollar. It is interesting to investigate the validity of Phillip?s curve under the small economy with fixed exchange rate, for example Hong Kong.