The final edition of the Reserve Bank Bulletin for 2009 presents a range of articles about the New Zealand economy, spanning a number of the Reserve Bank's functions.
The issue opens with an article outlining the Reserve Bank's new prudential liquidity policy for banks. The policy is discussed within the context of recent international experience and the specific features of the New Zealand banking system.
This is followed by an article comparing the recent forecasting performance of the Reserve Bank against a range of external forecasters. This suggests that although the Reserve Bank forecasts are more accurate than most, a number of forecasters perform well on particular variables and across different horizons.
The third article provides an historical perspective on banking crises in New Zealand. One conclusion from the article is that when a large shock hits the economy, the condition of the financial system is critical for understanding any subsequent damage.
The final article in this edition details the evolution of New Zealand's trade flows. The article documents how much export and import patterns have changed over recent years and the approach the Reserve Bank takes to measuring these movements.
Anthea Black, External Communications Adviser
Ph 04 4713767, 021 2225225