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External Imbalances and Macroeconomic Policy in New Zealand

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  • Philip R. Lane

    (Institute for International Integration Studies, Trinity College Dublin)

Abstract

This paper argues that large external imbalances pose signifi?cant macroeconomic risks for New Zealand. While New Zealand has coped well in recent years, the global fi?nancial crisis has underlined the vulnerability of defi?cit countries to fi?nancial shocks. New Zealand can draw important lessons from the global crisis by adjusting its macroeconomic policy framework to further mitigate the risks embedded in its international balance sheet.

Suggested Citation

  • Philip R. Lane, 2011. "External Imbalances and Macroeconomic Policy in New Zealand," The Institute for International Integration Studies Discussion Paper Series iiisdp376, IIIS.
    • Handle: RePEc:iis:dispap:iiisdp376
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    Cited by:

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    2. Juha Tervala, 2019. "U.S. monetary policy and China's exchange rate policy during the great recession," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 24(1), pages 113-130, January.

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    More about this item

    Keywords

    New Zealand; external imbalances; macroeconomic policy;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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