Innovation and Independence : The Reserve Bank of New Zealand 1973-2004

The Reserve Bank's operational independence, once revolutionary, is shown to now be widely accepted internationally in the fascinating story of how this small central bank took the opportunities created by the political changes of the 1980s to design a unique institutional policy framework, rather than merely adapt an off-the-shelf overseas package. From early to current history, this study, commissioned by the Reserve Bank itself, shows why the Bank's presence in the national life is strong; illustrates how it is internationally renowned for its strong mandate to eliminate inflation, having been the first reserve or central bank in the world to adopt the inflation targeting approach to monetary policy; and how the Bank maintains the integrity of the currency, preserves the stability of the financial system, and undertakes a range of activities on behalf of the people of New Zealand