2004 Monetary Policy Challenge
This year the Reserve Bank of New Zealand will once again be hosting the Monetary Policy Challenge.
The Challenge is aimed at secondary school economics students and is designed to expand their understanding of monetary
policy. The competition involves students becoming, in effect, central bankers. Just like the economists working at the
Reserve Bank, teams of students assess the economic conditions facing New Zealand and the outlook for inflation and then
prepare advice on what the Official Cash Rate (OCR) should be.
Past winners of the competition have been Logan Park High School from Dunedin (2002) and Tawa College from Wellington
(2003).
The competition starts on 31 May 2004 and runs throughout the second and third school terms. Regional heats will be
held in Dunedin, Christchurch, Wellington, Hamilton and Auckland during August. The winning team from each region will
be invited to the Reserve Bank to compete in the finals, held on 7 September 2004.
The winning school will receive a cash prize and its team will be invited to attend an actual Monetary Policy Statement
release in Wellington.
Reserve Bank Governor Alan Bollard commented "This competition brings to life for students the dilemmas that central
bankers face. Rather than just expecting students to learn established facts, this competition confronts students with
the challenge, ambiguity and uncertainly of actual decision making."
To help with their assessment of the economy and the outlook for inflation, participants will have access to up-to-date
economic data via the Reserve Bank's website at ( http://www.rbnz.govt.nz/challenge).
A Monetary Policy Challenge information pack has been mailed to Economics teachers around the country.