More than 100 economists from across the public and private sector and academia gathered in Wellington on 22 June 2021 to consider fiscal and monetary policy in the wake of the COVID-19 pandemic.
The Paul Goodloe McIntire Professor in Economics at the University of Virginia Eric Leeper and Secretary to the Treasury Dr Caralee McLiesh gave keynote addresses. Dr McLiesh discussed how macroeconomic frameworks could adapt and evolve to navigate challenges expected in future.
“Our macro frameworks guide decision-making and policy choices for monetary and fiscal policy. That includes decisions about taxes, spending, debt and interest rates. They are critical determinants to the wellbeing of current and future New Zealanders.
“While our macroeconomic frameworks have greatly enhanced economic stability in New Zealand over the last 30 years, they have been tested during the unprecedented upheaval of the COVID-19 pandemic, as well as by longer term structural trends in the economy.
“In these circumstances it is right to take stock of our approach and ask where changes need to be made. As we do this, we need to learn from the past. That means learning lessons from the pandemic, but also understanding the strengths and weaknesses of our frameworks as we’ve navigated numerous challenges over the last three decades.
“It also means keeping our eyes firmly fixed on the fundamental objectives our frameworks have sought, and still seek, to achieve – delivering improvements in living standards for current and future New Zealanders.”
In addition to Dr McLiesh's keynote speech, staff from the Treasury presented papers at the workshop including:
- Dr Yifei Lyu presented his Treasury working paper, the macroeconomic effects of government spending shocks in New Zealand, which estimates fiscal multipliers for New Zealand based on data from 1991-2019.
- Oscar Parkyn presented his draft working paper that considers enhancing the role of fiscal policy in New Zealand's macroeconomic stabilisation. This paper is a work in progress, and feedback on the draft is welcomed.
The agenda for this workshop: Reserve Bank of New Zealand / the Treasury Macroeconomic Workshop Agenda, 22 June 2021