Scoop has an Ethical Paywall
Estimating Time Varying Neutral Real Interest Rate
Estimating a time varying neutral real interest rate in New
Zealand
By Olivier Basdevant, Nils Björksten and Özer
Karagedikli February 2004
The interest rate which corresponds to neutral monetary policy settings in New Zealand appears to have trended downwards since at least the stabilisation of inflation in 1992.
We present several alternative estimates of a time varying neutral real interest rate (NRR) in state space models, which all show the same declining trend.
We then test for a relationship between the Neo-Wicksellian real interest rate gap and future inflation. As in Neiss and Nelson (2003), these two are highly correlated.
To read the paper click on the link below...
http://www.rbnz.govt.nz/research/discusspapers/dp04_01.pdf
Vegetables New Zealand: New Web-Based Tool Will Help Greenhouse Growers Switch To Geothermal Heating
Horizon Research Limited: New Poll - New Zealanders Prefer Rail Enabled Ferries
Watercare: Watercare Gets To Work On First Permanent Non-Potable Water Tanker Filling Station In Māngere
Alcohol Healthwatch: Licensing Decision Lauded For Prohibiting Buy Now Pay Later Schemes In Bottle Stores
Motor Industry Association: Vehicle Registrations Up 5.6% In December, But Year-To-Date Sales Reflect Market Challenges
BNZ: Depression-era Bequest Still Helping 88 Years Later
