Business cycle review, 1998-2011
AbstractThis article analyses New Zealand’s economic expansion from 1998 to 2007, the contraction that followed in 2008-09, and the gradual recovery thereafter. The expansion was long and large by the country’s post-war standards, while the contraction was marginally longer but shallower than the norm. An important driver of the expansion was a long and sustained rise in the terms of trade, in part reflecting expansion in the Asian region, especially China. A sharp rise in net immigration early in the period, a marked increase in the use of credit funded from offshore, and rising government spending were also important influences. The strong New Zealand dollar was another important factor, eroding competitiveness in parts of the tradables-producing sector and helping fuel demand for non-tradable goods and services. Balance sheets of households, farms and businesses became increasingly stretched over the period, a factor that has dampened the speed of recovery over the past three years.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Reserve Bank of New Zealand in its journal Reserve Bank of New Zealand Bulletin.
Volume (Year): 75 (2012)
Issue (Month): (March)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Drage & Anella Munro & Cath Sleeman, 2005. "An update on Eurokiwi and Uridashi bonds," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 68, September.
- Hall, Viv B. & McDermott, C. John, 2009. "The New Zealand Business Cycle," Econometric Theory, Cambridge University Press, vol. 25(04), pages 1050-1069, August.
- Emmanuel De Veirman & Michael Reddell, 2011. "Towards understanding what and when households spent," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 74, pages 1-11, December.
- Anne-Marie Brook & Sean Collins & Christie Smith, 1998. "The 1991-97 business cycle in review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 61, December.
- David Archer & Andy Brookes & Michael Reddell, 1999. "A cash rate system for implementing monetary policy," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 62, March.
- Jeff Borland, 2014. "Recent Unemployment Experience in New Zealand," Treasury Working Paper Series 14/01, New Zealand Treasury.
- Willy Chetwin & Tim Ng & Daan Steenkamp, 2013. "New Zealand’s short- and medium-term real exchange rate volatility: drivers and policy implications," Reserve Bank of New Zealand Analytical Notes series AN2013/03, Reserve Bank of New Zealand.
- Chris Hunt, 2013. "The last financial crisis and the case for macro-prudential intervention," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 76, pages 3-16, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reserve Bank of New Zealand Knowledge Centre).
If references are entirely missing, you can add them using this form.