Housing cycles in New Zealand can have important macroeconomic effects. Figure 1 shows long-term house price cycles against GDP growth and the exchange rate. Housing has often been associated with real activity cycles, and is even more correlated with financial cycles, as represented by changes in credit demand and the exchange rate.
CEMLA has played an important role in our region in the area of dissemination of information and experiences among central banks. Over the years, the organization has organized several seminars on statistical methodologies and theoretical approaches. In addition, the CEMLA regularly publishes and distributes empirical studies by central bank researchers in the region and organizes seminars and conferences to discuss the empirical findings.