Due to such effects, measures of labour underutilisation which are broader than the recorded unemployment rate would have predicted lower inflation in the last two years and thereby offered a better account of observed inflation outcomes than more traditional Phillips curve specifications. In view of this evidence domestic wage pressures may therefore only materialise at a relatively late stage in the economic expansion.
Our role as the supplier of currency is widely known and notes and coins are still used to make a significant proportion of retail payments. We are also the operators of the Exchange Settlement Account System (ESAS) and the securities depository and settlement system, NZClear.