Without our own currency, on the other hand, there is an increased risk that a fall in New Zealand export prices leads to no fall in our (new) currency, our exporters have to suffer the full pain of the fall in international prices, and may well be forced to lay off staff and reduce output.
That has an indirect effect, of course, on the rest of the country, but those who are not closely associated with the export industries may be relatively little affected. In the final analysis, the choice of exchange rate regime is mainly a choice about the nature of the pain we prefer to experience as a consequence of international shocks.