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Inflation Targeting in New Zealand: The 1987 Reserve Bank Questionnaire and Related Documents

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Abstract

New Zealand is acknowledged widely as the first country to implement a formal monetary policy agreement specifying an explicit inflation target. This agreement, signed in March 1990 between the Minister of Finance and the Governor of the Bank, was implemented under Section 9 of the Reserve Bank of New Zealand Act 1989. By 2014, inflation targeting agreements had been established, in several forms, in more than 25 countries. During the evolving 1984-1989 price stability and inflation targeting deliberations in New Zealand, a survey of Reserve Bank economists in early 1987 included the question 'Should the Bank have an explicitly-stated desired inflation time path?' This paper is primarily a record of the background and responses to this question. It also includes the original documents and related material.

Suggested Citation

  • Brian Silverstone, 2014. "Inflation Targeting in New Zealand: The 1987 Reserve Bank Questionnaire and Related Documents," Working Papers in Economics 14/11, University of Waikato.
  • Handle: RePEc:wai:econwp:14/11
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    References listed on IDEAS

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    More about this item

    Keywords

    inflation targeting; monetary policy; New Zealand; Reserve Bank of New Zealand;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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