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Article: The business cycle, housing and the role of policy: summary of a recent conference held by The Treasury and the Reserve Bank of New Zealand.(New Zealand. Reserve Bank of New Zealand)
- Article from:
- The Reserve Bank of New Zealand Bulletin
- Article date:
- March 1, 2008
- Author:
CopyrightCOPYRIGHT 2008 Reserve Bank of New Zealand. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Background
Since the mild recession in 1997, New Zealand has experienced the strongest and longest economic expansion on record. This lengthy growth phase and the very high rates of employment in the economy is an excellent outcome. The growth pattern has, however, been associated with a number of economic 'imbalances' and strong inflationary pressure, requiring a tight monetary policy stance. Over this decade, the exchange rate has also appreciated from record lows against the US dollar to record highs.
The appreciation of the exchange rate and the associated imbalances have been a concern for many and, in particular, have led to questions over whether ...