2 August 2000 Media Statement

Submissions called for Monetary Policy Review

"Written submissions are now being taken for the Independent Review into the Operation of Monetary Policy," Finance Minister Michael Cullen announced today.

The review is being conducted by Professor Lars Svensson, a world authority on monetary policy. Professor Svensson teaches international economics at Stockholm University.

"He will do a lot of the background work from Sweden but will be in New Zealand in November to further develop his understanding of the Reserve Bank's operations and to follow up on the issues raised in the submissions.

"There is no formal process for public hearings but Professor Svensson can at his discretion seek further discussion on individual submissions. He is required to submit his final report to me by 28 February, next year," Dr Cullen said.

"The review will evaluate the way New Zealand monetary policy is conducted and its effectiveness in contributing to broader social and economic goals.

"The Government is strongly committed to maintaining the operational independence of the Bank and to retaining the maintenance of price stability as the Bank's primary function.

"These areas have been fenced off from the review."

Submissions close at 4pm on Friday, 29 September.

Electronic submissions are preferred and should be sent to monpol.review@treasury.govt.nz. Written submissions should be sent to the Secretariat Manager, Independent Review of the Operation of Monetary Policy, The Treasury, 1 The Terrace, P.O.Box 3724, Wellington or faxed to 04-499-0992.

A full set of the terms of reference for the review and other information is available on the review website http://www.monpolreview.govt.nz.

To inform and encourage debate, all submissions will be posted on the website after the closure date unless submitters specifically request confidentiality.

ENDS

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