Analysing the economy for monetary policy purposes: some key issues

Reserve Bank of New Zealand Workshop held on 21 March 2003

This workshop aims to shed light on some underlying issues concerning the operation of monetary policy: productivity, equilibrium exchange rate and neutral real interest rate. These variables are of critical importance in monetary policy, yet they are all "unobserved". Estimation of these variables is subject to many uncertainties and problems in practice. Presentations at this workshop will cover recent thinking and research on these concepts and their interrelationships.

Programme schedule for "Analysing the economy for monetary policy purposes: key issues"
Friday 21 March 2003, Seminar Room, 2nd Floor, Reserve Bank of New Zealand

Morning session chaired by David Archer, Reserve Bank of New Zealand

8.30am

Opening remarks by Alan Bollard, Governor, Reserve Bank of New Zealand

8.45am

Nils Björksten, Reserve Bank of New Zealand


Monetary policy challenges in New Zealand: how are we different? (PDF 291KB)

9.00am

Christopher Plantier, Reserve Bank of New Zealand


New Zealand's economic reforms after 1984 and the neutral real rate of interest (PDF 120KB)

9.40am

Discussant – James Yetman, University of Hong Kong

9.50am

General discussion



10.15am

Morning tea



10.40am

Kenneth West, University of Wisconsin


Monetary policy and the volatility of real exchange rates in New Zealand (PDF 145KB)

11.20am

Discussant – John McDermott, National Bank of New Zealand

11.30am

General discussion



12.00

Lunch



Afternoon session chaired by Bob Buckle, The Treasury, New Zealand

1.30am

Matthew Shapiro, University of Michigan


Regime shifts in economic growth: assessing the evidence and the response of monetary policy (PDF 315KB)

2.10pm

Discussant – Malcolm Edey, Reserve Bank of Australia

2.20pm

General discussion



2.50pm

Afternoon tea



3.10pm

Ed Nelson, Bank of England


The real interest rate gap as an inflation indicator (PDF 680KB)

3.50pm

Discussant – David Hargreaves, Reserve Bank of New Zealand

4.00pm

General discussion



4.30pm

Thomas Laubach, Board of Governors, Federal Reserve Board


Measuring the natural rate of interest (PDF 151KB)

5.10pm

Discussant – David Gruen, Commonwealth Treasury, Australia

5.20pm

General Discussion



5.50pm

Rapporteur's remarks - Arthur Grimes
MOTU Economic and Public Policy Research

6.00pm

Closing remarks



7.00pm

Dinner at Le Monde Café

25 Bowen Street (in Turnbull House)

Workshop participants

  • Kenneth West, University of Wisconsin
  • Matthew Shapiro, University of Michigan
  • Ed Nelson, Bank of England
  • Thomas Laubach, Board of Governors, Federal Reserve Board
  • David Gruen, Commonwealth Treasury, Australia
  • James Yetman, University of Hong Kong
  • Malcolm Edey, Reserve Bank of Australia

Contact details

Özer Karagedikli

Reserve Bank of New Zealand

2 The Terrace

PO Box 2498

Wellington, New Zealand

Email:karagediklio@rbnz.govt.nz

Telephone: 64 4-471-3792

Fax: 64 4-473-1209