Relatively high interest rates in New Zealand have attracted foreign capital and increased demand for the NZD. 2  Note, that while the term ‘shock’ is a useful heuristic to discuss the multitude of influences on economic activity, it is often difficult to neatly demarcate cause and effect.
Some shocks may be genuinely ‘out of the blue’, while others may be the result of a complex interaction of other shocks. 2  BIS Review 9/2008  decision making on a daily basis, to longer term shocks, such as those associated with technological change.