Since August 2007, the global economy has been subject to a sharp and adverse financial shock, with re-pricing of risk and higher cost of funds. This article argues that this shock is a consequence of an unsustainable period of global economic growth involving very large external imbalances....

The integration of emerging markets such as China into the global economy has had a profound effect on the inflation process in advanced economies. This article examines the relationship between the integration of emerging Asia into the global economy and the inflation process in New Zealand,...

This article is an abridged version of a paper prepared for a conference commemorating the 80th anniversary of the Bank of Mexico held on 14-15 November. The theme of the conference was `Stability and Economic Growth: The Role of the Central Bank'. The article reviews New Zealand's economic...

This article examines ‘systemic’ banking crises in New Zealand. While there are examples of individual institutional failures in New Zealand’s early colonial development for example, there are only two episodes that have involved a significant erosion of banking system capital – our...

Describes the above, resulting from concerns about quality of many detailed estimates and a wider reprioritisation of ONS's businessThe Index of Production (IoP) published on 10 March 2008 was based on improved methods, as described in an article published in the January 2008 edition of Economic...

Last year the Reserve Bank concluded a review of its foreign exchange intervention policy. The review resulted in a recommendation to the Government that the Bank be given the capacity to broaden the objectives of foreign exchange intervention towards helping the Governor achieve monetary policy...

The changing interaction between economic and financial developments around the world is prompting lively debate in the academic and central banking community about the use of money and credit measures in contemporary monetary policy formulation. Currently, money and credit measures generally...

This article takes a look back at the last financial cycle that occurred over the previous decade – a cycle that contributed to one of the longest periods of uninterrupted economic growth in New Zealand for the past 60 years. It conducts a counterfactual exercise that maps the Reserve Bank’s...