We evaluate the performance of an open economy DSGE-VAR model for New Zealand along both forecasting and policy dimensions. We show that forecasts froma DSGE-VAR and a "vanilla" DSGE model are competitive with, and in some dimensions superrior to, the Reserve Bank of New Zealand's official...

We estimate the underlying macroeconomic policy objectives of three of the earliest explicit inflation targeters - Australia, Canada and New Zealand - within the context of a small open economy DSGE model. We assume central banks set policy optimally, such that we can reverse engineer policy...

Auckland is on the move. Economic growth is outpacing most regions and people continue to flow into the city. This is putting pressure on the shape of Auckland city and the form of housing and transport infrastructure.

This working paper evidences the key trends that should be expected to result from an ageing population. It looks at which kinds of industries will fall and which will flourish. It discusses the kinds of trends we might expect in terms of consumer demand and it touches on what firms should be...

A new report from the New Zealand Institute of Economic Research (NZIER) highlights the unprecedented fiscal challenges that New Zealand politicians will face in coming decades. NZIER recommends that tough decisions around taxes and government spending need to be taken now, and stuck to, in...

New Zealand is ageing. The number of old people will increase three-fold and will soon comprise a very large segment of society. Ageing will shrink the labour supply relative to the size of the population and the existing supply of capital. That has implications for wages and interest rates....

For policymakers, thinking about best practice monetary policy means thinking about uncertainty. Open economy monetary policymakers face an additional source of uncertainty – exchange rate dynamics. This paper identifies policy rules robust to the open economy inflation targeters face in...