That’s why central banks endeavour to be explicit about their frameworks and judgements in their monetary policy statements and on-the-record presentations. In discussing the world that central banker’s face in small open economies, I will offer some thoughts on: the international economy; the constraints and uncertainties around monetary policy judgements; and the recent application of monetary policy in New Zealand. 2.
The global economy  This year the global economy has hit another weak patch. Concerns have intensified in recent months following weaker production and trade data for China, Latin America and East Asia, and greater financial volatility – including sizeable equity market adjustments in some financial centres, and large portfolio outflows from emerging markets.