Independent Review of the Operation of Monetary Policy
In May 2000, the Government initiated a review of New Zealand's monetary policy framework. It appointed Professor Lars Svensson of Stockholm University to conduct the review and to report by the end of February 2001. On 28 February, Professor Svensson's report was released under the title Independent Review of the Operation of Monetary Policy: Report to the Minister of Finance.
7 August 2001
On 7 August 2001, the Reserve Bank Governor Don Brash issued a news release saying the announcement made by the Treasurer that "The Government has cross-party support for a series of minor changes to the Reserve Bank Act arising out of the Svensson Review of the Operation of Monetary Policy", was very welcome.
30 May 2001
On 30 May 2001, the Minister of Finance released his responses to the recommendations made in the Svensson report as the basis for consultations with other parliamentary parties.
At that time the Reserve Bank responded to Professor Svensson's Report, as did the Bank's Non-Executive Directors Committee. The Treasury's advice to the Minister was also made public.
During the review, the Reserve Bank made public its submission, along with a number of supporting documents, and a separate submission of the non-executive directors of the Board of the Reserve Bank. These are outlined below.
Main Reserve Bank submission
Reserve Bank supporting papers
Term of Reference 1
- The evolution of Policy Targets Agreements.
- The evolution of monetary policy implementation
- Inflation targeting in principle and practice
- Output volatility in New Zealand
- Business cycle developments and the role of monetary policy over the 1990s
- Monetary policy in an uncertain world
Term of Reference 2
Term of Reference 3
Term of Reference 4
- The monetary policy decision-making process
- The projection process and accuracy of the RBNZ projections