THE NEW ZEALAND EXPERIENCE OF THE TRANSITION TO THE INFLATION TARGETING REGIME AND ITS FEATURES

Abstract

The article examines the New Zealand experience of the transition to inflation targeting. In particular, the necessity and reasons for New Zealand’s transition to this regime were analyzed. When adjusting inflation expectations, the Reserve Bank’s activities in cooperation with the government were taken into account. The influence of the official cash rate on market rates was also studied. In addition, the exchange rate of the “Comfort zone” and the “Trade Weighted Index” were studied as part of the monetary policy. As part of open market operations, the Reserve Bank’s “Quantitative easing” instruments were analyzed.