Abstract

Since 1984, the New Zealand government has undertaken a series of policy actions designed to increase the economy’s reliance on private markets and promote greater economic competition. As a result of these policy actions, the financial sector has moved rapidly from being one of the most heavily regulated among industrialized economies to being one of the most unregulated. Interest rate controls have been removed, reserve requirements on depository institutions have been abolished, and barriers to entry in banking have been significantly reduced. At the same time, a new framework for monetary policy has been adopted. The impact of these major institutional changes on the structure of the financial sector and on the performance of the New Zealand economy are likely to be profound.KeywordsInterest RateMonetary PolicyGovernment SecuritySaving BankReal Gross Domestic ProductThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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