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Monetary policy and regional unemployment

Shaun Markham


This Analytical Note examines the effects of monetary policy on New Zealand’s regional labour markets.

Unemployment rates differ between regions, which raises the question of monetary policy’s possible contribution to these differences.

Our analysis suggests monetary policy has different impacts on unemployment depending on the region. Some regions, such as Waikato, Manawatu/Wanganui and the upper South Island, appear to be more sensitive to monetary policy than others.

Future research will investigate the reasons driving these regional differences, which may include the mix of industry, demography or other factors.