20 years of a floating New Zealand dollar

The Reserve Bank of New Zealand noted on Wednesday 2 March that this week marks the 20-year anniversary of the float of the New Zealand dollar. IThe bank said that the floating exchange rate regime has weathered several business cycles and plenty of 'shocks'.

The decision to float the exchange rate on 4 March 1985 reflected a growing consensus among the developed countries, that it is impossible for a country to choose the level of the exchange rate, the rate of domestic inflation, and the level

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