Why Should We Care About Monetary Policy?

New zealand is a very small economy bobbing around on a global financial m ocean. Dolaris still the common denominator, largely arm in currencies round the world. If us, intrest rates go up am and we don't, we'll learn that's downward pressure on our exchange rate. Likewise, if am the world gets spooked and everyone wants to rush to safety, that's generally the us Dollar. So we'rent interconnected a. And every country is. Countries have different ways of connecting theo for us in new zealamd with chosen ever freely floating exchange rate,. That means we can control local inflation, but we can't control the exchange rate.