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Article: Discussion papers.(FOR THE RECORD)(New Zealand. Reserve Bank of New Zealand)
- Article from:
- The Reserve Bank of New Zealand Bulletin
- Article date:
- March 1, 2008
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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DP2008/01
Some benefits of monetary policy transparency in New Zealand
Aaron Drew and Ozer Karagedikli, January 2008
The Reserve Bank of New Zealand (RBNZ) is regarded as one of the most transparent central banks in the world. Recent research suggests that one benefit of such transparency is that financial markets better anticipate a central bank's reaction to incoming data, and in relation, do not over-react to macroeconomic data surprises. In this paper, we provide some institutional details of how the RBNZ communicates its monetary policy decisions to financial markets and conduct an events analysis to test whether there are any transparency ...