The implementation of monetary policy in New Zealand: What factors affect the 90-day bank bill rate?
AbstractThis paper discusses the implementation of monetary policy in New Zealand and its flow-on effects on the 90-day bank bill rate over the 1999-2005 period. The effects of external factors are considered as well. Our findings indicate that the maturity spectrum ratio exerted a positive effect on the 90-day bank bill rate while the allotment ratio did not. This interest rate had a tendency to revert to the level set by its Australian counterpart, though at a relatively slow speed. No such link exists between the NZ 90-day rate and the U.S. 90-day rate. Neither the maturity spectrum nor the allotment ratio contributed to the volatility of the most important short-term interest rate in New Zealand.
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Bibliographic InfoArticle provided by Elsevier in its journal The North American Journal of Economics and Finance.
Volume (Year): 19 (2008)
Issue (Month): 2 (August)
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Web page: http://www.elsevier.com/locate/inca/620163
Other versions of this item:
- Alfred V. Guender & Oyvinn Rimer, 2007. "The Implementation of Monetary Policy in New Zealand: What Factors Affect the 90-Day Bank Bill Rate?," Working Papers in Economics 07/05, University of Canterbury, Department of Economics and Finance.
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
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