New Zealand Aotearoa’s macroeconomic frameworks guide decision-making and policy choices about the public finances and monetary policy. This means they impact everything from interest rates to tax to provision of public services and have significant impacts on the wellbeing of New Zealanders, both now and in the future.
In 2020, the Treasury began reviewing these frameworks to understand if changes in how we manage the economy can deliver better outcomes for New Zealanders.
More specifically, the Review’s aims are to: consider how fit-for-purpose the existing framework is for responding to emerging and future challenges, and identify opportunities for adapting and strengthening the framework.
As of April 2022, the Treasury’s focus includes consolidating its understanding of the current macroeconomic environment, identifying challenges and opportunities, and informing further research topics relevant to the Review’s key intent.
Published research: 2022
As part of this workstream, two Analytical Notes have been published on the Treasury website: ‘The impact of New Zealand’s macroeconomic frameworks on living standards’, and ‘Fiscal and monetary policy interaction at the effective lower bound’. In addition, a draft working paper on enhancing the role of fiscal policy in New Zealand’s macroeconomic stabilisation was published in June 2021. Further papers, looking at different aspects of monetary and fiscal policy, are intended to be published as the Macroeconomic Frameworks Review progresses.
Read more about our re-examination of the macroeconomic frameworks and how you can get involved.
Macroeconomic workshop: 2021
In June 2021, Te Tai Ōhanga – the New Zealand Treasury and Te Pūtea Matua – Reserve Bank of New Zealand brought together the macroeconomic research community for a workshop on fiscal and monetary policy in the wake of the COVID-19 pandemic.
The workshop also offered an opportunity for the Treasury to begin discussions and considerations to feed into its review of New Zealand's macroeconomic frameworks.