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March 2010 Reserve Bank Bulletin released

Implications for policy in light of the global financial crisis, both in New Zealand and across the globe, are the focus of the March 2010 Reserve Bank of New Zealand Bulletin, released today.

The lead article notes that, while inflation targeting has been successful in reducing the level and volatility in inflation, it has not guaranteed financial stability or macroeconomic stability. The article looks at the debate around whether monetary policy should have leant more strongly against economic imbalances in the lead-up to the crisis, and whether the policy toolkit for macroeconomic stabilisation needs to be expanded.

The second article summarises some of the issues discussed at a recent monetary policy conference marking the 20th anniversary of inflation targeting As part of the conference, Mark Gertler, Professor of Economics at New York University and the author of a key paper on the crisis, visited the Reserve Bank of New Zealand. The third article in the Bulletin is an interview with Mark Gertler who offers his thoughts on a variety of topics, including inflation targeting and the global financial crisis.

This is followed by an edited transcript of Professor Charles Goodhart's public lecture, given in Wellington at the start of the year, on "How the new architecture of financial regulations may develop?" Audio of the public lecture is available on the Reserve Bank's website (

The fifth article is a background paper to an address given by Governor Alan Bollard to the Canterbury Employers' Chamber of Commerce in late January. The Governor focuses on the lessons for monetary policy to be learned from the crisis.

The sixth article details lessons from past US recessions and recoveries, and offers predictions on how the US economy might recover out of the current recession.

The final article details recent trends in New Zealand's circulating notes and coins over the past year.

Media contact:
Anthea Black
External Communications Adviser
Ph 04 471 3767, 021 2225225,
[email protected]