The most recent business cycle in New Zealand was one of the longest and largest in the past 60 years. 3 The Reserve Bank has been analysing this cycle to help assess its monetary policy. This analysis provides a useful case study on the use of inflation targeting in a small open economy, like New Zealand’s.
This is something that we all do in all aspects of our lives – whether we are running a business, pursuing a career, or looking after a family. As we make plans in pursuit of a goal, we take into account what could go wrong – and what can be done to mitigate that.