March 2008 Reserve Bank Bulletin released

Release date
28 March 2008

The Reserve Bank today released the March 2008 issue of the Reserve Bank of New Zealand Bulletin.

The latest edition of the Reserve Bank Bulletin focuses on the theme of money and credit. Money and credit are a vital part of the economy, and essential to the performance of the Reserve Bank's duties.

The first of four articles relating to money looks at how the use of money and credit measures in monetary policy has evolved over recent decades. The article discusses how credit markets are receiving increased attention from policymakers, especially currently. This increased attention is due in part to the growing importance of the interaction between monetary policy and financial stability, and the increasing sophistication and international interconnectedness of the financial system.

The second article discusses recent trends and developments in the use of notes and coins in New Zealand, and in the Reserve Bank's currency operations.

The third article discusses some of the trade-offs and challenges the Reserve Bank faces in producing financial statistics, and some future directions for its activities in this area.

The final article discusses how the financial system creates money and credit, and the role that this process plays in the economy and in monetary policy.

This edition of the Bulletin also provides a short summary of a recent conference held by The Treasury and the Reserve Bank on the theme of the business cycle, housing and the role of policy.

Finally, an updated chronology lists key economic and financial events that shaped the conduct of the Reserve Bank's business over 2007.

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