In recent months, the Australian dollar has depreciated a little less than has the New Zealand dollar, and since Australia has a right-of-centre government and New Zealand a left-of-centre government that could be seen to lend some credibility to this theory.
A number of regulatory developments complicate matters still further: to mention only a few, consider the ongoing phase-in of the capital rules, the adoption of stringent liquidity requirements, the introduction of the TLAC framework, and the implementation of the BRRD. 3. The question, in conclusion, is how we should steer micro- and macro-prudential tools towards the objectives of stability and growth.