Reserve Bank of New Zealand Bulletin articles

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September 2004 (Vol 67, no 3)

Download the complete issue of the September 2004 Bulletin (PDF 800KB)

Articles

Editor's Note (PDF 56KB)

The long-run effects of monetary policy on output growth (PDF 211KB)

By Christie Smith
This article looks at how interest rates and inflation affect growth in the capital stock, labour supply, and technology, the main determinants of long-run economic growth. Many additional factors affect long-run economic growth, but most of these factors lie outside the sphere of monetary policy. Monetary policy therefore has only a limited capacity to contribute to economic growth over the longer term. However, the evidence does indicate that keeping inflation low and stable makes a positive contribution to long-run economic growth, and that this is the most effective contribution that monetary policy can make to the economy's performance over time. This finding supports the monetary policy framework operational in New Zealand, which is focused on keeping inflation between 1 and 3 per cent on average over the medium term.

NZIER's Capacity Utilisation Index (PDF 306KB)

By Bernard Hodgetts
The Institute of Economic Research (NZIER) produces an index of capacity utilisation from its Quarterly Survey of Business Opinion (QSBO) known as CUBO (standing for Capacity Utilisation, Business Opinion). CUBO is a useful indicator of the business cycle and inflation pressures, but its behaviour has changed over its 43-year history. The average level of CUBO fell sharply between 1974 and 1991 but has since increased again. Although that shift may be explained by economic factors, changes to the QSBO sampling framework could also be relevant. This article summarises a joint project led by the NZIER to investigate this issue. Reassuringly, it found that changes to the sampling framework do not appear to have had a significant impact on CUBO. Moreover, alternative calculations of CUBO produce a series which also shows a sharp fall over the 1974 to 1991 period.

Promoting strong corporate governance in New Zealand banks (PDF 46KB)

By Alan Bollard
The Reserve Bank of New Zealand has responsibility for registering and supervising banks in New Zealand. We do this for the purpose of promoting a sound and efficient financial system and for avoiding significant damage to the financial system that could result from the failure of a bank, as required by the Reserve Bank of New Zealand Act 1989.

Speeches

Supervising overseas-owned banks: New Zealand's experience (PDF 81KB)

An address by Alan Bollard, Governor of the Reserve Bank of New Zealand
Alternatively, link to the html version of this speech by Alan Bollard.

What's happening in the property sector? (PDF 137KB)

An address by Alan Bollard, Governor of the Reserve Bank of New Zealand to the Property Council of New Zealand in Rotorua.
Alternatively, link to the html version of this speech by Alan Bollard.

The views expressed are those of individual authors and do not necessarily reflect official positions of the Reserve Bank of New Zealand. Articles published in this Bulletin may not be wholly or substantially reproduced without the permission of the Reserve Bank of New Zealand. Data, brief extracts from articles, and other material appearing in the Bulletin, may be used without restriction provided due acknowledgement is made of the source.