December 2007 Reserve Bank Bulletin released

Release date
14 December 2007

The Reserve Bank today released the December 2007 issue of the Reserve Bank of New Zealand Bulletin.

This edition of the Bulletin focuses on the theme of the household sector. Household spending, saving and investment patterns strongly influence developments in the economy and financial system.

The first of the three articles relating to the household sector provides a stocktake of the Bank's extensive research programme on the persistent rise in household debt, decline in the rate of household saving, and rise in house prices.

The second article is a report by external sociologist consultants, Janice Burns and Maire Dwyer, on householders' attitudes to saving, investment and wealth.

The third article looks at how factors such as householder age, whether or not the householder owns the house, and the level of debt secured against a house that is owner-occupied, can influence household spending behaviour.

The final article in the edition looks at the recent restoration of the MONIAC hydraulic economic computer. This computer was designed and built by the pioneering New Zealand economist, Bill Phillips, in the 1940s.

Phillips' life and work will be celebrated in July 2008 at an international economists' symposium in Wellington. 2008 marks the 50th anniversary of the publication of Phillips' most famous article, about the relationship between inflation and unemployment. This relationship subsequently became widely known as the Phillips Curve.

For further information contact
Anthea Black
External Communications Adviser
Ph 04 471 3767, 021 222 5225, anthea.black@rbnz.govt.nz