Exchange rate strategies for developed open economies in the new millennium

Reserve Bank of New Zealand Workshop held on 19 February 2002

The purpose of this workshop is to consider the properties of exchange rate regimes, institutional choices regarding different exchange rate regimes, and other policy choices that may affect the behaviour of exchange rates.

These issues are to be considered in the context of developed open economies. In such economies the exchange rate, and implicitly the exchange rate regime, can have a material effect on both aggregate output and prices (via exchange rate pass-through). In turn, these macroeconomic quantities are intimately related to the monetary policy framework and monetary policy within each framework.

The papers in this workshop seek to address facets of these issues, with particular emphasis on the implications for policy.

Final programme schedule for exchange rate strategies for developed open economies in the new millennium

Tuesday 19 February 2002, 2nd floor Seminar Room, Reserve Bank of New Zealand

Morning session chaired by David Archer

9.00am

Opening remarks by Rod Carr, Deputy Governor, Reserve Bank of New Zealand

9.15am

Anne-Marie Brook, Reserve Bank of New Zealand


"Exchange rate strategies for small open developed economies such as New Zealand" (PDF 170KB)

9.30am

Professor Peter B Kenen, Princeton University


"Currency unions and policy domains"

10.10am

Discussant – Dr Marion Kohler, Reserve Bank of Australia

10.20am

General discussion



10.30am

Morning tea



10.50am

Dr Frank Smets, European Central Bank


"Openness, imperfect exchange rate pass-through and monetary policy," (PDF 180KB)

11.30am

Discussant – Dr Weshah Razzak, Reserve Bank of New Zealand

11.40am

General discussion



12.00pm

Lunch


Afternoon session chaired by Dr Arthur Grimes

1.30pm

Dr Ingvild Svendsen, Bank of Norway


"Experiences and future challenges for a small oil-producing country"

To download the powerpoint presentation

2.10pm

Discussant - Michael Reddell, Reserve Bank of New Zealand

2. 20pm

General discussion

2.30pm

Professor Takatoshi Ito, Hitotsubashi University


"Is foreign exchange intervention effective? The Japanese experiences in the 1990s" (PDF 69KB)


Figures and tables (PDF 77KB)

3.10pm

Discussant – Kelly Eckhold, Reserve Bank of New Zealand

3.20pm

General discussion



3.30pm

Afternoon tea



3.45pm

Dr Malin Adolfson, Swedish Riksbank


"Optimal monetary policy delegation under incomplete exchange rate pass-through"

4.25pm

Discussant – Chris Plantier, Reserve Bank of New Zealand

4.35pm

General discussion

4.45pm

Rapporteur's remarks, Dr Malcolm Edey, Assistant Governor, Reserve Bank of Australia

4.55pm

Closing remarks



7.00pm

Dinner – Turnbull Café

Workshop participants

Speakers

  • Professor Takatoshi Ito, Hitotsubashi University

  • Professor Peter B Kenen, Walker Professor of Economics and International Finance, Princeton University

  • Dr Frank Smets, European Central Bank

  • Dr Malin Adolfson, Swedish Riksbank

  • Dr Ingvild Svendsen, Bank of Norway

Contact details

Nils Bjorksten

Reserve Bank of New Zealand

2 The Terrace

PO Box 2498

Wellington, New Zealand

Email:bjorkstenn@rbnz.govt.nz

Telephone: 64 4-471-3620

Fax: 64 4-473-1209