A cobweb model of financial stability in New Zealand

Paul Bedford and Chris Bloor ()

No DP2009/11, Reserve Bank of New Zealand Discussion Paper Series from Reserve Bank of New Zealand

Abstract: Financial turbulence over the past two years has generated increased interest in the analysis of financial stability. However, such analysis often suffers from conceptual difficulties and a lack of measurability. This paper develops a ‘cobweb model’ for analysing financial stability in New Zealand. A key objective of this cobweb model is to depict the Reserve Bank of New Zealand’s assessment of financial stability in a single diagram that will enable better communication of the main risks facing New Zealand’s financial system. The results of this model are displayed using a cobweb-style diagram, with five dimensions constructed using a wide range of quantitative indicators, supplemented by expert judgement where necessary. It is anticipated that this cobweb diagram will become the focal point of the Reserve Bank’s Financial Stability Report.

JEL-codes: E32 E44 G01 (search for similar items in EconPapers)
Pages: 20 p
Date: 2009-11
New Economics Papers: this item is included in nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.rbnz.govt.nz/-/media/ReserveBank/Files/ ... ers/2009/dp09-11.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nzb:nzbdps:2009/11

Access Statistics for this paper

More papers in Reserve Bank of New Zealand Discussion Paper Series from Reserve Bank of New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Reserve Bank of New Zealand Knowledge Centre ().