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Business cycle review: 2008 to present day

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Abstract

Following the global financial crisis, spare capacity in the global economy has persisted much longer than in past expansions despite extremely accommodative monetary policy settings in advanced economies. New Zealand has not been immune to these developments – GDP growth here has also been more subdued than in typical expansions, in large part due to weakness and uncertainty abroad. Against this international and domestic backdrop, consumer price inflation in New Zealand has been low, and lower than the Reserve Bank of New Zealand and other forecasters initially anticipated – particularly since 2014. This article summarises developments in the New Zealand economy since 2008 through the lens of monetary policy, and identifies five key phases. A subsequent article will present some of the key features of this cycle, and the insights for monetary policy that have emerged or been reinforced.

Suggested Citation

  • Rebecca Williams, 2017. "Business cycle review: 2008 to present day," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 80, pages 1-22, March.
    • Handle: RePEc:nzb:nzbbul:mar2017:2
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    Cited by:

    1. Adam Richardson, 2019. "New Zealand Wage Inflation Post-crisis," RBA Annual Conference Papers acp2019-02, Reserve Bank of Australia, revised Jul 2019.
    2. Viv B. Hall & C. John McDermott, 2021. "Changes in New Zealand's business insolvency rates after the GFC," New Zealand Economic Papers, Taylor & Francis Journals, vol. 55(2), pages 173-187, May.
    3. Julia Ratcliffe & Ross Kendall, 2019. "Monetary policy strategy in New Zealand," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 82, pages 1-25, April.
    4. John McDermott & Rebecca Williams, 2018. "Inflation Targeting in New Zealand: An Experience in Evolution," RBA Annual Conference Volume (Discontinued), in: John Simon & Maxwell Sutton (ed.),Central Bank Frameworks: Evolution or Revolution?, Reserve Bank of Australia.
    5. Viv B Hall & C John McDermott, 2019. "Changes in New Zealand’s Business Insolvency Rates after the Global Financial Crisis," Working Papers 19_15, Motu Economic and Public Policy Research.

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