Finance and Expenditure Select Committee Inquiry into the Future Monetary Policy Framework
In April 2007, at the request of the Government, Parliament's Finance and Expenditure Committee agreed to undertake an inquiry into the future monetary policy framework.
The terms of reference for this inquiry are as follows:
- To consider the causes of inflationary pressures.
- To consider the effectiveness of current monetary policy in controlling inflation.
- To examine the interaction of monetary policy with other elements of the economic policy framework including fiscal policy.
- To examine the New Zealand economy’s capacity for non- inflationary growth, and how it can be improved.
- To examine the role of productivity in the economy, how it can be improved, and the constraints upon it.
- To examine the recommendations from recent examinations of monetary policy including the joint Treasury and Reserve Bank of New Zealand’s report entitled Supplementary Stabilisation Instruments.
- To consider additional measures that could enhance monetary policy in New Zealand.
27 July 2007
The Reserve Bank's main submission (PDF 148KB) contains all the key points.
An additional 11 supporting papers provide more detailed material and background information. The supporting papers are as follows:
A1 Monetary policy framework and goals (PDF 93KB)
A9 Foreign exchange intervention (PDF 39KB)
30 July 2007
The Reserve Bank Board of Directors have made a separate submission (PDF 46KB) to the Finance and Expenditure Committee’s Inquiry into the Future Monetary Policy Framework.