This article reports on a policy forum sponsored by the New Zealand Treasury, the Reserve Bank of New Zealand, and Victoria University of Wellington on New Zealand’s macroeconomic imbalances. Chief among these imbalances is New Zealand’s large stock of net foreign liabilities, but there are...

The legislative framework for monetary policy has been fairly settled for more than 20 years. This stability contrasts with the frequent revisions that occurred to statutory provisions dealing with monetary policy objectives and the relationship between the Reserve Bank and the government in the...

In December 2009 the Reserve Bank of New Zealand, in conjunction with Northwestern University’s Centre for International Economics and Development (CIED), hosted a monetary policy conference to mark the 20th anniversary of the Reserve Bank of New Zealand Act. Passed in December 1989, the Act...

The article explores the role of financial intermediation in the monetary transmission mechanism. It discusses how and why shocks that affect lenders' willingness to lend can have an impact on economic activity, and why this needs to be factored into analyses of the interaction of monetary...

This article looks at how interest rates and inflation affect growth in the capital stock, labour supply, and technology, the main determinants of long-run economic growth. Many additional factors affect long-run economic growth, but most of these factors lie outside the sphere of monetary...

This article examines explanations for the recent performance of the United States economy. We examine both `New Economy' and other more conventional explanations. The second objective is to see whether `New Economy' factors have had an impact on the New Zealand economy.

This article sets out the "stylised facts" of the last business cycle - what actually happened to the economy during the course of the cycle, and in what respects this was similar to, and different from previous New Zealand economic cycles and experiences internationally.

In this article we examine whether New Zealand having its own currency leads to higher interest rates in New Zealand when compared to Australia or the United States.