Finance and Expenditure Select Committee Inquiry into the Future Monetary Policy Framework


In April 2007, at the request of the Government, Parliament's Finance and Expenditure Committee agreed to undertake an inquiry into the future monetary policy framework.

The terms of reference for this inquiry are as follows:

  • To consider the causes of inflationary pressures.
  • To consider the effectiveness of current monetary policy in controlling inflation.
  • To examine the interaction of monetary policy with other elements of the economic policy framework including fiscal policy.
  • To examine the New Zealand economy's capacity for non- inflationary growth, and how it can be improved.
  • To examine the role of productivity in the economy, how it can be improved, and the constraints upon it.
  • To examine the recommendations from recent examinations of monetary policy including the joint Treasury and Reserve Bank of New Zealand's report entitled Supplementary Stabilisation Instruments.
  • To consider additional measures that could enhance monetary policy in New Zealand.

Main submission

27 July 2007

The Reserve Bank's main submission contains all the key points (PDF 148KB)

Additional supporting papers

An additional 11 supporting papers provide more detailed material and background information. The supporting papers are as follows:

A1 Monetary policy framework and goals (PDF 93KB)

A2 A review of economic developments and monetary policy since 2000 (PDF 499KB)

A3 How similar is monetary policy in New Zealand, Australia, and the United States? (PDF 115KB)

A4 Why are New Zealand interest rates so persistently high by international standards? (PDF 58KB)

A5 Productivity, investment, exports and monetary policy (PDF 88KB)

A6 Supplementary Stabilisation Instruments project and the Macroeconomic Policy Forum (PDF 48KB)

A7 Other possible supporting policy initiatives (PDF 91KB)

A8 Prudential regulatory policy and the business cycle (PDF 59KB)

A9 Foreign exchange intervention (PDF 39KB)

A10 Possible improvements to macroeconomic statistics (PDF 46KB)

A11 Background material on monetary policy processes and accountability mechanisms (PDF 76KB)

Reserve Bank Board of Directors' Submission on Future Monetary Policy Framework

30 July 2007

The Reserve Bank Board of Directors have made a separate submission to the Finance and Expenditure Committee's Inquiry into the Future Monetary Policy Framework (PDF 46KB)