Maintaining an open economy within certain bounds on inflation, output gap and exchange rate can help sustainable economic development. Macroeconomics proposes monetary-policy models that describe evolution of the above quantities. We use one such model, constituted by a four-metastate...

Previous research has evaluated New Zealand's growth performance in the context of a decade of microeconomic and macroeconomic reforms, and concluded that on balance there is scope for cautious optimism on the sustainability of recently improved economic growth (Hall, 1995, 1996). That research...

The first objective of this chapter is to document New Zealand's aggregate and sectoral growth performance for the period 1985-1994, compared with that of other (OECD) countries and its own post War performance. The second, is an essentially neoclassically-based “growth accounting” or...