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June 2002 Reserve Bank Bulletin Released

The Reserve Bank today released the June 2002 issue of the Reserve Bank of New Zealand Bulletin.

As in recent Bulletins, the June 2002 Bulletin covers a wide range of topics from monetary policy to financial system stability, finishing with an article on credit trends.

The first article looks at the Reserve Bank's use of a model in formulating its monetary policy. The Reserve Bank of New Zealand is unique in that it is the only central bank to use a model that adjusts interest rates across the projected period. Other central banks use a constant nominal interest rate across the period. The article explains why the Reserve Bank uses this approach.

The following two articles relate to financial system stability. The first deals with corporate governance among banks and financial institutions. The other is the Reserve Bank's annual review of the banking system.

The final article discusses the changing sources of and demand for credit since 1980, and examines the implications for New Zealand's overseas debt.

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