WELLINGTON, New Zealand : More than 30 years ago, some relatively youthful central bank and Treasury economists in New Zealand were grappling with how to bring two decades of double-digit inflation under control in an economy less than 1 per cent the size of its U.S. counterpart.What if, they asked, they
WELLINGTON, New Zealand : More than 30 years ago, some relatively youthful central bank and Treasury economists in New Zealand were grappling with how to bring two decades of double-digit inflation under control in an economy less than 1 per cent the size of its U.S. counterpart.
As some observers question whether that level remains valid today - in most cases debating if it should be raised to blunt the blows to growth and employment from the high interest rates being employed by central banks in order to achieve it - the inflation-targeting pioneers in New Zealand are standing by it.
Graphic: Inflation remains above target everywhere https://www.reuters.com/graphics/GLOBAL-CENBANKS/INFLATION/lbvggoqwgvq/chart.pngWhen New Zealand became the first country to mandate inflation targeting, the upper limit was 2 per cent and the lower one just 0 per cent. At the time, inflation was running at 7.6 per cent but had tracked above 10 per cent on average between 1970 and 1990, and few people thought the target was realistic.
The adoption of the inflation target was followed by aggressive monetary tightening, with 90-day rates climbing to 15 per cent in 1990. A year later, inflation had fallen to 2 per cent and New Zealanders' inflation expectations adjusted quickly to the new paradigm. Initially there was debate about whether interest rates or money supply should be the target, but it was decided it was better to target the ultimate goal: inflation.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Auckland, New Zealand starts clean-up after torrential rains, flash floodsAuthorities in New Zealand's biggest city, Auckland, began mopping up on Saturday (Jan 28) after torrential rains brought flash flooding and evacuations, with at least two people confirmed dead and two missing in the widespread inundation. A state of emergency remained in place in the city of 1.6 million people on New Zealand's north island as the rains eased after...
続きを読む »
Deadly New Zealand flood crisis extends in country's north islandAuckland, New Zealand’s largest city, remained under a state of emergency after flash floods that left three people dead. Read more at straitstimes.com.
続きを読む »
Deadly New Zealand flood crisis extends in country's North IslandSYDNEY: New Zealand's deadly flood emergency continued on Sunday (Jan 29) after heavy rainfall hit the country's North Island, causing landslides and flash floods, and knocking
続きを読む »
New Zealand roiled by flash floods, landslides for third dayNew Zealand's death toll from heavy rain rose to four on Sunday (Jan 29) as flash floods and landslides on the north island continued for a third day. Battered since
続きを読む »
New Zealand's Auckland expected to receive further rains as flooding remainsWELLINGTON: Flood ravaged Auckland is expected to receive further heavy rain over the coming days, according to the city’s council, even as people start to count the cost of the flash floods that have h
続きを読む »
New Zealand counts cost of Auckland floods, more rain forecastWELLINGTON: Flood-ravaged Auckland is forecast to receive further heavy rain in the coming days, authorities in New Zealand's largest city said on Monday (Jan 30), as insurers counted the costs of what looks likely to be the country's
続きを読む »