New Zealand has accumulated substantial liabilities against the rest of the world reflecting persistent current account deficits over the past 30 years. International evidence suggests that when international creditors become unwilling to continue to fund a country’s external liabilities (a...

This article presents the results from the March 1995 quarter Reserve Bank of New Zealand Survey of Expectations

Prasanna Gai is a Professor at the Australian National University and a consultant to the Bank of England, where he haspreviously worked on financial stability matters. Prasanna visited the Reserve Bank early in 2009. In this interview, he talks about the current financial crisis and the...

This article sets out theoretical and empirical evidence on the impact of fiscal policy on the business cycle. Our analysis suggests that fiscal policy has a significant influence on cyclical conditions in New Zealand. Simple measures of the stance of fiscal policy, such as the Treasury’s...

If exchange rate risk were a major impediment to trade, a currency union with one or more of our trading partners could facilitate trade with those partners. However, it is often suggested that exchange rate risk should not impede trade, because firms can manage the effect of exchange rate...

This article takes a detailed look at the factors influencing New Zealand's current account deficit, and its potential ramifications.

Stress testing a bank loan portfolio by estimating potential losses in a severe economic scenario provides a useful way of evaluating the risks that lenders face. This article describes a model that the Reserve Bank has constructed to analyse the risks facing banks that are lending to New...

This article presents the results from the November 1994 Reserve Bank of New Zealand Survey of Expectations.

This article is a brief summary of a lecture delivered on 19 June at Victoria University in Wellington by Professor Ken West. Professor West was a visiting professor under the Professional Fellowship programme sponsored by the Reserve Bank.

This article presents some simple estimates of Phillips curves for New Zealand inflation and outlines a recent reorganisation of the inflation process in the Reserve Bank's Forecasting and Policy System (FPS). While modern economic theory suggests the traditional Phillips curve should be used...