Independent Review of the Operation of Monetary Policy

In May 2000, the Government initiated a review of New Zealand's monetary policy framework. It appointed Professor Lars Svensson of Stockholm University to conduct the review and to report by the end of February 2001. On 28 February, Professor Svensson's report was released under the title Independent Review of the Operation of Monetary Policy: Report to the Minister of Finance as PDF (598KB).

7 August 2001:

On 7 August 2001, the Reserve Bank Governor Don Brash issued a news release saying the announcement made by the Treasurer that "The Government has cross-party support for a series of minor changes to the Reserve Bank Act arising out of the Svensson Review of the Operation of Monetary Policy", was very welcome.

30 May 2001:

On 30 May 2001, the Minister of Finance released his responses (PDF 21KB) to the recommendations made in the Svensson report as the basis for consultations with other parliamentary parties.

See the Reserve Bank’s news release.

At that time the Reserve Bank (PDF 57KB) responded to Professor Svensson’s Report, as did the Bank’s Non-Executive Directors Committee (PDF 48KB). The Treasury’s advice (PDF 58KB) to the Minister was also made public.

The review’s website can be found at http://www.treasury.govt.nz/publications/reviews-consultation/monpolreview

During the review, the Reserve Bank made public its submission, along with a number of supporting documents, and a separate submission of the non-executive directors of the Board of the Reserve Bank. These are outlined below.