Differences in transmission mechanisms can generate asymmetric behaviour among currency union partners when they experience shocks. This has the potential to widen existing cyclical variation between members of a currency union. Our analysis suggests that the transmission mechanisms of GDP and...

Over the past 18 months, inflation in New Zealand has been surprisingly low, even as GDP has strengthened and many measures of excess capacity in the economy have tightened largely as expected. Unexpected strength in the New Zealand dollar, which has reinforced strong domestic and international...

Transmission mechanisms are the channels through which monetary policy affects macroeconomic variables, such as GDP and inflation. Differences in transmission mechanisms can generate asymmetric behaviour among currency union partners when they experience shocks. This has the potential to widen...

Inflation expectations play an important role in shaping the inflation consequences of economic activity. Hence, they are of special importance for monetary policy. Survey measures of inflation expectations are available, but whether they are a good representation of true beliefs is a moot...