Reserve Bank of New Zealand Bulletin articles
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December 2004 (Vol 67, no 4)
December 2004 (Vol 67, no 4)
Download the complete issue of the December 2004 Bulletin (PDF 578KB)
Articles
Editor's Note (PDF 45KB)
Liquidity management in the New Zealand banking system (PDF 181KB)
By Jan Frazer
This article provides an overview of how the Reserve Bank (the Bank) conducts liquidity management. It describes the two areas of liquidity management conducted by the Bank - what the Bank does to maintain a stable and sufficient supply of system liquidity and what it does to ensure individual banks have access to liquidity to meet daily transactional obligations through the payments and settlement system. It also explains how the Bank supports its monetary policy implementation by managing the level of liquidity in the banking system so as to avoid large fluctuations in short-term interest rates.
Currency hedging by exporters and importers (PDF 165KB)
By Phil Briggs
This article summarises recent work undertaken at the Reserve Bank on currency hedging by exporters and importers. The work involved interviewing bank staff and business executives, reviewing data sources and previous studies, and undertaking simulations to estimate firms' gains or losses from hedging. It seems that in recent years, hedging activity has had a significant positive impact on exporters' incomes. While the level of hedging activity has apparently changed over time, there are still some issues as to how such changes could be accurately measured and monitored..
GDP-12 - the Bank's measure of trading partner demand (PDF 127KB)
By Mark Smith
This article provides readers with the technical details of the Bank's measure of external demand. GDP-12, as it is known, is a summary measure that is used to help gauge trading partner demand for New Zealand's exports. Although GDP-12 is a useful summary measure, there are other external influences affecting the demand for our exports and economic activity more generally. Bearing this in mind, the Bank considers a wide range of developments in its monitoring and forecasting of the world economy.
A note on the Reserve Bank inflation calculator (PDF 62KB)
By Graham Howard and Matthew Wright
In June 2003 the Reserve Bank published an inflation calculator ("the Calculator") on its website. This application enables interested users to calculate the effect of inflation on a "basket" of goods and services between two dates selected by the user. The Calculator has attracted significant attention, and well over 20,000 "hits" were recorded on the Calculator's home page during 2004. Links to the Calculator were established on a number of financial, educational and government websites, including Statistics New Zealand and the official New Zealand government historical site. This article documents an extension to the Calculator, enabling it to provide estimates of purchasing power back to 1862.
Speeches
Systemic financial crises - resolving large bank insolvencies (PDF 83KB)
An address by Alan Bollard, Governor of the Reserve Bank of New Zealand to the Federal Reserve Bank of Chicago conference.
Alternatively, link to the html version of this speech by Alan Bollard.
A prosperous but vulnerable nation (PDF 35KB)
An extract from an address by Adrian Orr, Deputy Governor of the Reserve Bank of New Zealand to the Society of Actuaries.
Alternatively, link to the html version of this speech by Adrian Orr.
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
