We examine the relationship between exchange rate movements and the real economy – an area that has been the focus of considerable debate in recent years. We consider different concepts of exchange rate equilibrium, and review recent evidence on whether the New Zealand dollar exchange rate...

This paper looks at the importance of the terms of trade for the New Zealand economy by examining the impact of changes in the trend and volatility of the terms of trade on economic growth. It is found that the volatility in the terms of trade has had a negative impact on New Zealand’s...

This paper examines New Zealand’s ranking in the OECD based on real GDP per capita. The fall in ranking experienced by New Zealand implies that real GDP per capita growth in New Zealand has been relatively poor in comparison to other OECD countries. The paper examines the history of New...