Reserve Bank of New Zealand Bulletin articles

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December 2003 (Vol 66, no 4)

Download the complete issue of the December 2003 bulletin (PDF 445KB)

Articles

Editor's Note (PDF 14KB)

New Zealand's financial sector regulation (PDF 191KB)

By Geof Mortlock
This article provides a summary of the regulatory framework in the New Zealand financial sector. It describes the core components of the financial system, including the financial institutions and financial markets, and explains the infrastructure required to support the system. The article then discusses the main aspects of the regulatory framework of the financial system, particularly banking supervision and securities market regulation.

The relationship between inflation expectations survey data and inflation (PDF 88KB)

By Satish Ranchhod
Inflation expectations play an important role in shaping the inflation consequences of economic activity. Hence, they are of special importance for monetary policy. Survey measures of inflation expectations are available, but whether they are a good representation of true beliefs is a moot point. Survey measures of inflation expectations often do not track well with realised inflation rates, sometimes producing large forecast errors. Indeed, survey measures of inflation expectations often tend to track better with current or past inflation than with future inflation, raising questions as to their usefulness as proxies for true expectations.

This article examines the relationship between surveyed inflation expectations and inflation in New Zealand since inflation stabilised in the early 1990s. It turns out that while survey data may be inaccurate predictors of the level of inflation, they can still provide useful directional information regarding near-term inflationary pressures. Survey data can be used to supplement other economic indicators, giving a better indication of future inflation.

The Reserve Bank Inflation calculator (78KB)

By Graham Howard and Matthew Wright
In June 2003, the Reserve Bank released a web-based inflation calculator, enabling users to select two dates and a dollar amount, and calculate an amount adjusted for inflation between those two dates. This article discusses the functionality of the Calculator and gives examples of its uses.

Speeches

After the National Bank acquisition: living with big Australian banks: an excerpt from an address to the Australasian Institute of Banking and Finance (16KB)

Alternatively link to an html version of this address by Dr Alan Bollard

Investing in a low inflation world : an address to the Auckland Club and the MBA Business Meeting (86KB)

Alternatively link to an html version of this address by Dr 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.