Panel Session I, Practical Experiences in Reducing Inflation: The Case of New Zealand
This chapter contains remarks by Donald Brash, governor of the Reserve Bank of New Zealand (RBNZ) from 1988 to 2002. Brash briefly sketches the course of inflation in New Zealand through the 1970s and early 1980s, then focuses on the factors that led New Zealand to become the first country to formally adopt inflation targeting, on the reasons why that approach to monetary policy seems to have worked there, and finally, on some of the unresolved issues New Zealanders face.
I prepared my chapter for the NBER volume personally, on the basis of my experience as Governor of the Reserve Bank of New Zealand for nearly 14 years, from September 1, 1988, to April 26, 2002. I received no payment for the preparation of the speech.
At the time I gave the speech, I was a director of two major companies in New Zealand - the ANZ National Bank (New Zealand's largest commercial bank) and Transpower (the state-owned company which owns the electricity grid in New Zealand). They certainly contributed no money towards the preparation of the speech, and there was no conflict of interest involved in the content of the speech.