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Stylised facts for New Zealand business cycles: A post-1987 perspective

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  • McKelvie, S.
  • Hall, Viv B.

Abstract

Key features of NZ business cycles were established for the period 1966q4 to 1990q1 by Kim, Buckle and Hall (1994) (KBH), but the conduct of fiscal, monetary and labour market policy and the behaviour of New Zealand's economy have changed considerably since then. Our results for the period 1987q2 to 2010q4 show a reduction in volatility and a rise in persistence for both the real economy and for price and monetary variables. Government sector, open economy, monetary and labour market results differ from those advanced in KBH. Overall, we establish a more credible set of benchmark regularities, to help underpin the construction and use of contemporary NZ macroeconomic models.

Suggested Citation

  • McKelvie, S. & Hall, Viv B., 2012. "Stylised facts for New Zealand business cycles: A post-1987 perspective," Working Paper Series 2364, Victoria University of Wellington, School of Economics and Finance.
  • Handle: RePEc:vuw:vuwecf:2364
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    File URL: http://researcharchive.vuw.ac.nz/handle/10063/2364
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    References listed on IDEAS

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    Cited by:

    1. Matteo Cacciatore & Fabio Ghironi & Stephen J. Turnovsky, 2015. "Inflation Targeting and Economic Reforms in New Zealand," International Journal of Central Banking, International Journal of Central Banking, vol. 11(4), pages 145-198, September.
    2. Miles Workman, 2015. "Estimating the Cyclically- and Absorption-adjusted Fiscal Balance for New Zealand," Treasury Working Paper Series 15/09, New Zealand Treasury.
    3. Hall, Viv & Thomson, Peter & McKelvie, Stuart, 2015. "On trend robustness and end-point issues for New Zealand’s stylised business cycle facts," Working Paper Series 3761, Victoria University of Wellington, School of Economics and Finance.
    4. 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.

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    Keywords

    Business cycle stylised facts; New Zealand; Growth cycle analysis;

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