Would Adopting the US Dollar Have Led to Improved Inflation, Output and Trade Balances for New Zealand in the 1990s?

Viv Hall and Angela Huang ()
Additional contact information
Angela Huang: Reserve Bank of New Zealand

No 03_14, Working Papers from Motu Economic and Public Policy Research

Abstract: Deterministic simulations with the Reserve Bank of New Zealand's core FPS model show how New Zealand's broad macroeconomic environment might have evolved over the 1990s, if a US nominal yield curve and US TWI exchange rate movements under a common currency arrangement had been experienced. Relatively looser monetary conditions would have prevailed, and led to modest short-run output gains, greater excess demand pressures, noticeably higher CPI inflation rates over the whole of the 1990s, and less favourable trade balance outcomes, especially for the late 1990s. These macroeconomic outcomes are overall less favourable than those obtained from simulating the equivalent Australian monetary conditions.

Keywords: Common currency; monetary policy; deterministic simulation; New Zealand; Australia; United States (search for similar items in EconPapers)
JEL-codes: E17 E31 E37 E58 F36 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2003-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://motu-www.motu.org.nz/wpapers/03_14.pdf

Related works:
Journal Article: Would adopting the us dollar have led to improved inflation, output and trade balances, for New Zealand in the 1990s? (2004)
Working Paper: WOULD ADOPTING THE US DOLLAR HAVE LED TO IMPROVED INFLATION, OUTPUT AND TRADE BALANCES FOR NEW ZEALAND IN THE 1990s? (2004)
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:mtu:wpaper:03_14

Access Statistics for this paper

More papers in Working Papers from Motu Economic and Public Policy Research Contact information at EDIRC.
Bibliographic data for series maintained by Maxine Watene ().