This characterization is certainly consistent with the pickup in investment rates in the industrial countries, which I noted earlier, and it is also consistent, more generally, with the recovery of domestic demand growth in Europe, Japan, and other parts of the industrial world.
BIS central bankers’ speeches  5  Figure 5 Excess of domestic credit growth over nominal GDP growth  Source: Statistics New Zealand, RBNZ calculations  Monetary policy in New Zealand is also complicated by exchange rate issues. In a small open economy the inflation target is a complement to a floating exchange rate regime.