Interestingly, and perhaps contrary to some impressions both in New Zealand and abroad, achieving this marked improvement in inflation performance was not bought at the cost of an increase in output volatility.
Yes, output volatility was higher in New Zealand during the nineties than in, say, Australia or the United States, but that is hardly surprising: one would expect to see rather more output volatility in a very small, commodity-dependent, economy than in a much larger and more diversified economy.