RBNZ paper stresses need to understand global shocks


The Reserve Bank of New Zealand has published an article explaining how it analyses the nature of global economic shocks, and how it hopes to cope with the effects of them in the future.

In Opening the toolbox: how does the reserve bank analyse the world? the team of authors outline how shocks can affect many countries simultaneously (a global shock), or one after the other (spillovers), which could then significantly harm domestic economies.

Small, open economies such as New Zealand are

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