The greater difficulties in ensuring ex post their orderly exit further supports this view. One way of implementing a calibrated approach would be through the supervisory review process. In fact, in several supervisory jurisdictions the authorities are already paying particular attention to the larger and more complex institutions, a step consistent with the shift suggested here.
If historical relationships hold, one would expect the New Zealand dollar to move broadly in line with inflation differentials over the longer term, and a few months ago this led a number of commentators to suggest that, at that time, the New Zealand dollar was clearly over-valued.