Goldman Sachs' Boak on RBNZ Policy

The video discusses the economic outlook for Australia and New Zealand, focusing on the potential for a soft landing amid inflation challenges. It examines the transmission of monetary policy, highlighting wealth effects and house price adjustments. The role of the Reserve Bank of New Zealand (RBNZ) is explored, emphasizing its aggressive stance to manage inflation and wage growth. The discussion includes the impact of supply chain disruptions and the tight labor market on inflation in New Zealand.

How do supply chain disruptions affect inflation in small open economies like New Zealand?

What are the implications of the wage-price spiral observed in New Zealand?

What measures might the RBNZ take to address inflation expectations and wage growth?