New Zealand: Selected Issues

International Monetary Fund

No 2007/151, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper analyzes the underlying factors that explain the behavior of the Kiwi dollar. The findings suggest that the factors influencing the New Zealand dollar have been changing. The paper discusses that as New Zealand has become more integrated in global capital markets over time, the Kiwi dollar has become less of a commodity currency and more of a global currency that is influenced by interest rate spreads and global risk factors. The paper also looks at the strong preference for housing over financial assets exhibited by New Zealand households.

Keywords: ISCR; CR; interest rate; carry trade; bank; New Zealand dollar; exchange rate; house price inflation; asset quality; housing investor; Kiwi dollar; New Zealand dollar assets; NZD turnover; mortgage interest levy; rental yield; commodity currency; Housing prices; Housing; Exchange rates; Mortgages; Global; Australia and New Zealand (search for similar items in EconPapers)
Pages: 43
Date: 2007-05-07
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Citations: View citations in EconPapers (3)

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