13 August 2015
King’s College wins Monetary Policy Challenge
The Reserve Bank has announced that King’s College, Auckland, is the national winner of the 2015 Monetary Policy Challenge (MPC). Waikato Diocesan School for Girls was placed second, and Taupo-nui-a-Tia College came third.
The MPC expands secondary school economics students' understanding of monetary policy, and links to NCEA achievement
standards. Just like economists working in the Reserve Bank, each team that entered the MPC analysed the economic
conditions facing New Zealand and the outlook for inflation to decide on an appropriate setting for the Official Cash
Rate. The teams first presented their decisions online via videoconference, and the top six teams in New Zealand were
then selected to present at the national finals in Wellington.
The national final took place at the Reserve Bank in Wellington yesterday, and the judges were Assistant Governor John
McDermott and two Reserve Bank economists, Jed Armstrong and Hayden Skilling.
The judges said that all of the presentations were excellent and the teams demonstrated broad knowledge of monetary
policy and factors currently affecting the New Zealand economy, such as changing dairy and oil prices.
“All of the schools coped extremely well with some very challenging questions and had a sound understanding of how
monetary policy flows through to affect the economy,” Dr McDermott said.
“The King’s College team were particularly impressive in explaining the difficulties associated with monetary policy
implementation in the hypothetical case where interest rates have reached the zero lower bound.”
King’s College won $2500 in prize money for their school and each team member also wins prizes worth $500. The team is
invited to travel back to the Reserve Bank in Wellington to watch the release of the next Monetary Policy Statement by
Governor Graeme Wheeler, meet with senior decision-makers, and see first-hand how economic theory is put into practice.
Waikato Diocesan School for Girls won $1500 and Taupo-nui-a-Tia College won $750 in prize money for their respective
schools. The other national finalists were Macleans College (Auckland), Napier Girls’ High School, and Diocesan School
for Girls (Auckland).
"The national finalists all achieved at a high level and had clearly put many hours of study and preparation into their
entries in the competition,” Dr McDermott said. “We also acknowledge the efforts of the many teachers who have
contributed valuable time and effort to inspire and guide their students.”
The MPC is open to all New Zealand secondary school senior economics students and runs annually from May to August.
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