How New Zealand adjusts to macroeconomic shocks: implications for joining a currency area

In this article we consider how the New Zealand economy might adjust to shocks if it were a member of a currency union. In a currency union the exchange rate can no longer act as a mechanism of adjustment. Consequently, we consider the role of alternative adjustment mechanisms, such as migration, price and wage flexibility, and fiscal adjustment.

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Year of publication:	2000
Authors:	McCaw, Sharon ; McDermott, C John
Published in:	Reserve Bank of New Zealand Bulletin. - Reserve Bank of New Zealand. - Vol. 63.2000, March, 1
Publisher:	Reserve Bank of New Zealand

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005395335