This paper investigates the impact of exchange rate movements on the conduct of monetary policy in Australia, Canada, New Zealand and the United Kingdom. We develop and estimate a structural general equilibrium two-sector model with sticky prices and wages and limited exchange rate pass-through....

We use a novel approach to identify economic developments that drive exchange rates in the long run. Using a panel of six quarterly U.S. bilateral real exchange rates Australia, Canada, the euro, Japan, New Zealand and the United Kingdom over the 1980-2007 period, a dynamic factor model points...

This paper sets out to describe the dynamic nature of the trans-Tasman trade and economic relationship and to develop an approach to quantify the costs and benefits of moving from CER to a wider concept of a 'borderless market'. To examine the dynamic nature of the relationship we have looked at...

In a small open economy heavily dependent on trade, such as New Zealand, small changes in New Zealand’s international trading environment have major impacts on economic well-being. The simple fact is that small countries are far more vulnerable to economic change than large countries. To...

This paper sets out to examine the factors that need to be considered before New Zealand enters into negotiations over further integration in the trans-Tasman market. While it is timely to look forward to the shape of possible future integration, it is also important to understand the lessons of...

Economic relations between Australia and New Zealand comprise trade in goods, services, labour and capital. Table 1 lists the dependence of Australia on New Zealand markets, and the dependence of New Zealand on Australian markets, in the simple sense of the magnitude of imports and exports of...

This paper reviews three key issues associated with temporary agency work (referred to as agency work herewith) by drawing on Australian and New Zealand trends and experiences. First, the authors contend that it is surprising, in light of its high flexibility, that agency work constitutes a...

This paper analyzes the stabilizing properties of alternative monetary policy regimes. In practice there is a choice between two broad types of monetary policy regimes: a fixed exchange rate regime or a floating exchange rate regime. In this paper I compare exchange rate targeting with different...

We examine the evolution of monetary policy rules in a group of inflation targeting countries (Australia, Canada, New Zealand, Sweden and the United Kingdom), applying a moment-based estimator in a time-varying parameter model with endogenous regressors. Using this novel flexible framework, our...