A Currency or Monetary Union for New Zealand? An Empirical Study (Revised)
Abstract: This paper analyses whether New Zealand would be ready to form a currency or monetary union with either Australia, the 11 EU countries that are members of the EMU, Japan or the US. The analysis is an empirical study with data from the mid 1980s to 1998 using cointegration techniques to search for co-movement in key economic variables: interest rates, inflation rates, exchange rates, and deficit/GDP ratios.
JEL Classification: F42, F33