There is considerable evidence from industrial countries that the output gap is an important determinant of inflation. We examine whether the gap model also works in developing, newly industrializing, and industrial Asian economies. Our output gaps are based on a new nonparametric estimation...

Theoretical and empirical literature on inflation is extensive, and it abounds with diverse opinion. Principal works are of overseas origin; no substantial research has been published relating specifically to the New Zealand economy. This study does not attempt to develop a comprehensive theory...

This paper presents a preliminary simultaneous equation model capable of explaining New Zealand's post-war inflation. It is a model consistent with New Zealand having been a small fixed exchange rate open economy subject to very extensive controls over its balance of payments' current account...

Any investigation into a potential quantitative role for inflationary expectations can proceed in three steps. The first, to obtain or construct time series data which represent the expected rate of inflation; the second, to research how such inflationary expectations could have been formed; and...

This paper reports the theoretical development of a small aggregative model of output, employment, capital formation and inflation. The model (which we subsequently refer to as BHP) is designed to explain medium term cyclical growth in a small open economy. It allows explicitly for...

Deterministic simulations with the Reserve Bank of New Zealand's core FPS model show how New Zealand's broad macroeconomic environment might have evolved over the 1990s, if a US nominal yield curve and US TWI exchange rate movements under a common currency arrangement had been experienced....