在降息的同时，通货膨胀率却低于整体预期，这说明新西兰央行可能会从一方面继续对房地产行业感到担忧。此外，还有关于银行在金融危机期间倒闭的轶事证据支持这些经验和理论结果(Hassan al – tamimi et al.， 2007)。事实上，OOCC和FDIC关于银行破产原因的官方报告本质上具有指示性，它明确说明了银行破产是由信贷风险和流动性风险共同作用造成的。UBS的融资框架和资产负债表管理相关的方法在创造UBS的次级风险敞口方面做出了重要贡献(Huang et al.， 2009)。然而，银行却失败了，甚至没有考虑区分非流动资产和流动资产以及各自期限的融资。因此，与资产相关的信用风险被忽略了。
The objective of this research is to conduct an analysis of the macroeconomic issue of inflation as faced in the economy of New Zealand since the past ten years. For the purpose of this analysis, there will be reference of a macroeconomic theory for critically analysing and evaluating the policy used by the Reserve Bank of New Zealand in dealing with the issue of inflation. The following research questions will be answered:
How effective is the current inflation policy set by New Zealand and can any improvement be made? If yes, provide adequate recommendations.
The price index of consumers has been rising at 0.4 per cent on annual basis, with forecasts of gain misses from central bank and economists. The inflation of New Zealand had been weaker in comparison with the forecast of central bank and economists during the second quarter with the increased odds in cutting rate of interest (Castelnuovo&Surico, 2010). As a result, there was a fall of currency depicting the following facts:
The price index of consumers ended up increasing by 0.4 per cent since the earlier year.
The gain had been less in comparison with the median forecast at 0.5 per cent across 16 economists.
The prices ended up rising by 0.4 per cent since the first quarter when there were gains at 0.2 per cent.
There was an expectation from economists with a quarter increases at 0.5 per cent.
While cutting off the rates of interest, the inflation rate is being weaker than the overall expectation depicts that the Reserve Bank of New Zealand may be continuously worrisome in the housing industry from one side. In addition, there are anecdotal evidences about the failures of bank during the financial crisis supporting these empirical and theoretical results (Hassan Al-Tamimi et al., 2007). As a matter of fact being indicative by nature, official reporting on OOCC and FDIC regarding the reasons for failures of bank provides an explicit statement that the failure took place due to the combined effect of credit risks and liquidity risks. Funding framework of UBS and approach related to management of balance sheet made significant contributions in creating the subprime exposure of UBS (Huang et al., 2009). However, the bank failed in, and even did not consider differentiating between illiquid and liquid assets and the funding of respective term. Thereby, credit risks related to the assets had been disregarded.