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New Zealand proves the laws of economics wrong.
When the rediscount rate goes down to 2% then the NZD is supposed to go down against the USD while the invisible hand does its stuff to restore equilibrium.
However every time in defiance against the textbooks the NZD goes up when the interest rate goes down.
Is there something here that the Reserve Bank is not telling us?
When the rediscount rate goes down to 2% then the NZD is supposed to go down against the USD while the invisible hand does its stuff to restore equilibrium.
However every time in defiance against the textbooks the NZD goes up when the interest rate goes down.
Is there something here that the Reserve Bank is not telling us?
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