1  These were referred to in a recent address delivered to the Institute of Directors in Auckland on 30 May 2013: Forces Affecting the New Zealand Economy and Policy Challenges Around the Exchange Rate and the Housing Market.
2  The real effective exchange rate provides a more accurate picture of competitiveness than the nominal effective exchange rate as it corrects for differences in relative inflation rates (or relative unit labour costs movements) between New Zealand and its major trading partners. BIS central bankers’ speeches  1  Figure 1: New Zealand’s real effective exchange rate  Source: Bank for International Settlements.