Reserve Bank of New Zealand Bulletin articles
(NB. If you do not have the free Acrobat reader software necessary to read these discussion papers already installed, go to the Adobe website.)
March 2000 (Vol 63, no 1)
Articles
The process of economic growth in New Zealand (PDF 264KB)
By Paul Conway and Adrian Orr, Economics Department
In this article, we outline a framework for thinking about economic growth and discuss New Zealand's recent growth experience within that context. We also discuss the role of price stability, which is seen largely as an important, although not sufficient, condition for enabling sustained economic growth.
Can hedging insulate firms from exchange rate risk (PDF 79KB)
By Andy Brookes, David Hargreaves, Carrick Lucas and Bruce White, Financial Markets Department and Economics Department
If exchange rate risk were a major impediment to trade, a currency union with one or more of our trading partners could facilitate trade with those partners. However, it is often suggested that exchange rate risk should not impede trade, because firms can manage the effect of exchange rate fluctuations by hedging. In this article, we examine whether hedging really can eliminate exchange rate risk.
How New Zealand adjusts to macroeconomic shocks: implications for joining a currency area (PDF 429KB)
By Sharon McCaw and C John McDermott, Economics Department
In this article we consider how the New Zealand economy might adjust to shocks if it were a member of a currency union. In a currency union the exchange rate can no longer act as a mechanism of adjustment. Consequently, we consider the role of alternative adjustment mechanisms, such as migration, price and wage flexibility, and fiscal adjustment.
Y2K and banking system liquidity (PDF 57KB)
By Tim Hampton, Financial Markets Department
This article explains the pre-emptive and liberal approach the Reserve Bank of New Zealand took to assure banks of access to liquidity over the year-end period. Doing so helped avoid disrupting normal business and jeopardising the access of businesses and households to credit.
Speeches
The building blocks of economic growth (PDF 38KB)
Alternatively, link to the html version of this speech by Dr Don Brash.
Inflation targeting in New Zealand, 1988-2000 (PFD 51KB)
Alternatively, link to the html version of this speech by Dr Don Brash.
The views expressed are those of individual authors and do not necessarily reflect official positions of the Reserve Bank of New Zealand. Articles published in this Bulletin may not be wholly or substantially reproduced without the permission of the Reserve Bank of New Zealand. Data, brief extracts from articles, and other material appearing in the Bulletin, may be used without restriction provided due acknowledgement is made of the source.
(c) Reserve Bank of New Zealand
