The Reserve Bank of New Zealand Bulletin

Quarterly that explores issues related to both central banking and the New Zealand economy. On the record speeches of the Governor and Deputy Governors also featured regularly.

Articles from Vol. 70, No. 2, June

A Review of the Trade Weighted Exchange Rate Index
1 Introduction The exchange rate plays an important role in the tradables sector of the New Zealand economy. Movements in the exchange rate affect both the demand and supply of exports and imports, and the New Zealand dollar prices at which these...
Banks Need to Think about Broader Economic Imbalances
9 May 2007 The Reserve Bank today released its Financial Stability Report, a twice-yearly report that assesses the health of the New Zealand financial system. The report covers developments in financial institutions, foreign exchange and debt markets,...
Discussion Papers
DP2007/03 Satisficing solutions for New Zealand monetary policy by Jacek Krawczyk and Rishab Sethi, March 2007 Computing the optimal trajectory over time of key variables is a standard exercise in decision-making and the analysis of many dynamic...
Editor's Note
One of the most frequent questions for the Reserve Bank is how changes in the Official Cash Rate (OCR) affect inflation. There are, in fact, a range of ways through which the OCR influences the inflation rate, some more direct than others. In the first...
Financial Literacy and Its Role in Promoting a Sound Financial System
1 What is financial literacy? Financial literacy means different things to different people. For some it is a wide-ranging concept, incorporating an understanding of economics and how household decisions are affected by economic conditions and circumstances....
How Fiscal Policy Affects the Wider Economy
30 March 2007 The Reserve Bank has presented a framework for considering how fiscal policy affects the wider economy, an important issue for monetary policy. The framework appears in an article in March 2007 issue of the Reserve Bank of New Zealand...
Reserve Bank Raises OCR to 8.00 Percent
7 June 2007 The Official Cash Rate (OCR) will increase by 25 basis points to 8.00 percent. Reserve Bank Governor Alan Bollard said: "Domestic demand has grown strongly since late 2006, particularly in the household sector. Housing market activity...
The Reserve Bank's Policy on Outsourcing by Banks
1 Introduction In today's world of global banking and a highly specialised business environment, it is common practice for banks to enter into domestic and cross-border outsourcing arrangements for an increasing range of business activities. The...
The Transmission Mechanism of New Zealand Monetary Policy
1 Introduction Every six weeks, the Governor of the Reserve Bank decides whether current monetary policy is set appropriately to ensure that the Bank's price stability objective is met, and if not, how policy should be adjusted. (2) This follows...