Education Policy | Post Primary | Preschool | Primary | Tertiary | Search

 


UC postgrad in US to research NZ exchange rate fluctuations

Canterbury postgraduate heading to New York to research NZ exchange rate fluctuations

July 4, 2014

A University of Canterbury postgraduate is heading to New York to research the rise and fall in the New Zealand exchange rate.

Fluctuating exchange rates impact on the public, positively and negatively. Rising exchange rates make imported consumer goods and imported capital goods for firms cheaper but they also make exports more expensive for foreign buyers which reduce exporters' revenues.

James Graham will do his PhD research at New York University, with the support of a Fulbright scholarship, to find out why New Zealand's exchange is thought to be more volatile than many other countries such as the United States, Europe and Japan.

“Our exchange rate doesn't tend to rise or fall any more than similar countries like Australia. One of the reasons New Zealand's exchange rate fluctuates is that there are frequent changes in New Zealand's economic fortunes. For example, when the price of our exports goes up or down, expectations of our economic growth may rise or fall.

“Also, when other countries' economic fortunes are doing very well or very poorly it impacts on our exchange rate. What's often more important, though, is figuring out why a particular exchange rate movement occurred in the first place. If the exchange rate is falling because New Zealand has entered a recession, this is likely a bad thing overall even though exporters' revenues are likely to rise.

“I'm hoping the two years’ of coursework I have to do before I get to my research will give me a lot of good ideas and tools for investigating the exchange rate. There seem to be two popular ways of researching the exchange rate at the moment. First, statistical models consider the many relationships between exchange rate movements and movements in other economic variables. However, these models often have difficulty exploring causation between these variables.

“Secondly, a bunch of structural models try to uncover causation between different variables. However, these models often have difficulty explaining exchange rate movements. I'm hoping I'll find a way to incorporate the explanatory power of the statistical models, with the ability to identify causation in the structural models.

“In between my studies, I would really like to spend some time working for the Federal Reserve Bank in New York. Hopefully my time at the Reserve Bank of New Zealand, where I am currently working, will be relevant for them, but I expect it will be a much different experience working there in the midst of one of the world's busiest cities.”

Graham’s PhD in economics at New York is a five year degree. In that time, he hopes to wrap his head around his research topic as the exchange rate is an issuer that economists just don't yet seem to agree about.

“We don't yet know whether high exchange rates are on balance detrimental or beneficial for New Zealand and we don't really know if there are policies that can do something about it without causing offsetting harms of their own.

“I'm hoping that my time in New York will give me some perspective from the centre of the economic world, rather from the periphery that I'm used to in New Zealand. I will be learning from some of the world's leading experts in macroeconomics and international economics which will help me to better understand New Zealand's exchange rate issues,” Graham says.

ENDS

© Scoop Media

 
 
 
 
 
Culture Headlines | Health Headlines | Education Headlines

 

Architecture:
Ian Athfield Dies In Wellington

New Zealand Institute of Architects: It is with great sadness that we inform Members that Sir Ian Athfield, one of New Zealand's finest architects, has passed away in Wellington. More>>

ALSO:

Wellington Production: New-Look Tracy Brothers Are F.A.B.

ITV and New Zealand’s Pukeko Pictures today released an exclusive preview of the new-look Tracy brothers from this year’s hotly anticipated new series, Thunderbirds Are Go. More>>

ALSO:

Cardinal Numbers:
Pope Francis Names Archbishop From NZ Among New Cardinals

Announcing a list of bishops to be made Cardinals in February Pope Francis named Archbishop John Dew, Archbishop of Wellington, overnight from Rome. On hearing the news of the announcement, Archbishop John Dew said "This news is recognition of the Catholic Church in Aotearoa New Zealand, and the contribution it makes to the global Catholic family." More>>

ALSO:

Nomenclature: Charlotte And Oliver Top Baby Names For 2014

Charlotte and Oliver were the most popular names for newborn girls and boys in 2014... The top 100 girls’ and boys’ names make up a small proportion of the more than 12,000 unique first names registered for children born this year, says Jeff Montgomery, Registrar-General of Births, Deaths and Marriage. More>>

Werewolf: Katniss Joins The News Team

From the outset, the Hunger Games series has dwelt obsessively on the ways that media images infiltrate our public and personal lives... From that grim starting point, Mockingjay Part One takes the process a few stages further. There is very little of the film that does not involve the characters (a) being on screens (b) making propaganda footage to be screened and (c) reacting to what other characters have been doing on screens. More>>

ALSO:

Scoop Review Of Books: Ko Witi Te Kaituhituhi

Witi Ihimaera, the distinguished Māori author and the first Māori to publish a book of short stories and a novel, has adopted a new genre with his latest book. But despite its subtitle, this book is a great deal more than a memoir of childhood. More>>

Werewolf: Rescuing Paul Robeson

Would it be any harder these days, for the US government to destroy the career of a famous American entertainer and disappear them from history – purely because of their political beliefs? You would hope so. In 1940, Paul Robeson – a gifted black athlete, singer, film star, Shakespearean actor and orator – was one of the most beloved entertainers on the planet. More>>

ALSO:

"Not A Competition... A Quest": Chapman Tripp Theatre Award Winners

Big winners on the night were Equivocation (Promising Newcomer, Best Costume, Best Director and Production of the Year), Kiss the Fish (Best Music Composition, Outstanding New NZ Play and Best Supporting Actress), and Watch (Best Set, Best Sound Design and Outstanding Performance). More>>

ALSO:

Get More From Scoop

 
 

LATEST HEADLINES

 
 
 
 
Education
Search Scoop  
 
 
Powered by Vodafone
NZ independent news