14 June 2006
The Reserve Bank today released the June 2006 issue of the Reserve Bank of New Zealand Bulletin.
With banks increasingly operating across geographical borders, a major issue for banking supervisors around the globe is how those banks should be supervised by their `home' and `host' country regulators. In the first article, Professor Ed Kane from Boston College provides a thought-provoking piece on the issues involved in establishing a fair and harmonised system of banking regulation, with particular reference to banks operating across both Australia and New Zealand. The article was the basis for a public lecture delivered while Professor Kane was Professorial Fellow of Monetary and Financial Economics at Victoria University in 2005.
Economic models play an important role in most central banks for both forecasting and policy simulation work. The second article reviews the evolution of economic models at the Bank from the 1970s to today.
The third article is the paper prepared for an address to the Canterbury Employers' Chamber of Commerce by the Governor earlier this year. It considers three major global developments of major significance to the New Zealand economy. These include the rapid industrialisation of China and other developing economies, the housing boom recently experienced across many countries, and the increased premium on security arising from the need for increased biosecurity, global warming and various geopolitical events. The article notes that these events pose significant policy issues as well as challenges for businesses and households that need to adjust to them.
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