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Exchange rate challenges: how should policymakers respond?

In: The price, real and financial effects of exchange rates

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  • Grant Spencer

    (Reserve Bank of New Zealand)

Abstract

The topic for our panel discussion is potential policy responses to exchange rate challenges. The main challenge from my perspective, and I would say for both Australia and New Zealand since the global financial crisis (GFC), has arisen from periods of significant upward pressure on our exchange rates. A high exchange rate puts pressure on export industries, particularly manufacturers, encourages imports and puts downward pressure on price inflation.

Suggested Citation

  • Grant Spencer, 2018. "Exchange rate challenges: how should policymakers respond?," BIS Papers chapters, in: Bank for International Settlements (ed.), The price, real and financial effects of exchange rates, volume 96, pages 130-132, Bank for International Settlements.
  • Handle: RePEc:bis:bisbpc:96-14
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