Reserve Bank Bulletin released

The Reserve Bank today released the December 2012 edition of the Reserve Bank Bulletin.

The Bulletin’s first article looks at how well New Zealand’s labour market is doing in matching workers with available jobs. The unemployment rate suggests there is substantial slack in the labour market, yet some other indicators suggest the market is tighter and less disinflationary. The article explores this apparent discrepancy and suggests both the Canterbury earthquakes and international migration flows may have contributed to an increased mismatch between job vacancies and available unemployed workers.

The second article explains how repo markets function and what differentiates New Zealand’s repo market from those offshore.

Recent trends and developments in currency are explored in the Bulletin’s third article. Despite the increasing use of electronic payments in New Zealand, the value of currency in circulation continues to rise. The article outlines the Bank’s rigorous note processing procedures, which ensure the notes in circulation are of high quality.

The Bulletin’s final article outlines the work that is underway to produce a full set of financial accounts and flow of funds tables for New Zealand. Such accounts are expected to improve understanding of financial behaviours and relationships in New Zealand’s economy. New experimental estimates of some components of household business assets add another $170 billion to previously published estimates of total household assets.