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.
I would like to take this opportunity to make some remarks on this issue in the German context: Firstly, collaboration between the Bundesbank and BaFin has worked well, both before and during the crisis. Secondly, the Bundesbank did not ask to be given full responsibility for banking supervision. Rather it was an objective of the political parties that have won the federal elections.