ECON141: The cash rate and interest rates
Hi ECON141 students. Unlike ECON130 there isn’t weekly material on this site, with lecture notes being provided instead. However, I will add the occasional piece to help give what we are doing some context – so that it can be used to understand what is currently happening.
In that vein, today we are going to talk about how the central bank does influence the nominal interest rate in New Zealand (as compared to our still useful discussion of bond purchases in class). By doing so we will also be able to ask about “negative interest rates” in a later post.
It should be noted that none of the content I cover here is assessed – you will be assessed on what we do in class and in the lecture notes and readings. Instead the purpose of this is to add a bit more detail about things for students who are interested.
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