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dc.contributor.authorKarim, M. S.en
dc.contributor.authorLee, Minsooen
dc.contributor.authorGan, C.en
dc.date.accessioned2008-03-04T02:10:52Z
dc.date.issued2005-10en
dc.identifier.issn1174-5045en
dc.identifier.urihttps://hdl.handle.net/10182/327
dc.description.abstractThis paper analyzes the dynamic effects of unexpected domestic and foreign monetary policy shocks on 'industrial output' in New Zealand based on a 'new open economy macroeconomic' (NOEM) model. Empirical analyses are performed using unrestricted recursive open economy Vector Autoregressive (VAR) models involving policy and non-policy variables of New Zealand and four of its most important trading partners, i.e. Australia, Japan, United Kingdom and USA. The empirical findings are in accord with the qualitative predictions of monetary transmission channels relevant to a small open economy and no empirical anomalies are observed regarding the NZ output behaviour following a domestic restrictive monetary policy shock. Besides, the empirical findings also indicate that the full effects of a restrictive domestic monetary policy shock on industrial output in New Zealand are faster when Australian and US variables are included in the VAR model of monetary transmission compared to the cases when Japanese and UK variables are incorporated into the same model. On the other hand, domestic industrial output shows contraction due to a restrictive foreign monetary policy shock; reflecting the small open economy feature of New Zealand.en
dc.language.isoenen
dc.publisherLincoln University. Commerce Division.en
dc.relationThe original publication is available from - Lincoln University. Commerce Division.en
dc.subjectoutput effects of monetary policyen
dc.subjectnew open economy macroeconomic modelen
dc.subjectopen economy benchmark VAR modelsen
dc.subjectmonetary transmission channelsen
dc.subjectrestrictive monetary policy shocksen
dc.titleReal effects of monetary policy in New Zealanden
dc.typeDiscussion Paper
dc.subject.marsdenFields of Research::340000 Economics::340200 Applied Economics::340208 Macroeconomics (incl. monetary and fiscal theory)en
lu.contributor.unitLincoln Universityen
lu.contributor.unitFaculty of Agribusiness and Commerceen
lu.contributor.unitDepartment of Financial and Business Systemsen
pubs.organisational-group/LU
pubs.organisational-group/LU/Faculty of Agribusiness and Commerce
pubs.organisational-group/LU/Faculty of Agribusiness and Commerce/FABS
pubs.organisational-group/LU/Research Management Office
pubs.organisational-group/LU/Research Management Office/PE20
pubs.organisational-group/LU/Research Management Office/QE18
pubs.publication-statusPublisheden
lu.identifier.orcid0000-0002-5618-1651


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