2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27...
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Transcript of 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27...
![Page 1: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/1.jpg)
2009 Job Summit World Recession & How We Cope
Alan Bollard, Governor
Reserve Bank of New Zealand
27 February 2009
![Page 2: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/2.jpg)
THE RESERVE BANK OF NEW ZEALAND
The biggest destruction of global wealth ever?
$3 trillionLost output
$4 trillionHousing
$30 trillionEquity Markets
$2 trillionCredit-related losses
Value loss (est. $US)
![Page 3: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/3.jpg)
THE RESERVE BANK OF NEW ZEALAND
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
97 98 99 00 01 02 03 04 05 06 07 08 09
QPC
Trading partner growth slows
AsianCrisis
TechBubble
Sars FinancialCrisis
![Page 4: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/4.jpg)
THE RESERVE BANK OF NEW ZEALAND
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
97 98 99 00 01 02 03 04 05 06 07 08 09
QPC
Trading partner growth slows
AsianCrisis
TechBubble
Sars FinancialCrisis
![Page 5: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/5.jpg)
THE RESERVE BANK OF NEW ZEALAND
Lower growth world must adjust
Consumption, currencies
Reserves
Savings, exports
Currencies
![Page 6: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/6.jpg)
THE RESERVE BANK OF NEW ZEALAND
New Zealand has strengths…
• Past strong growth, low unemployment
• Flexible product and labour markets
• Floating exchange rate & hedging
• Responsive monetary policy
• Strong government accounts
• Sound banking system
![Page 7: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/7.jpg)
THE RESERVE BANK OF NEW ZEALAND
94
96
98
100
102
104
Dec-07 Dec-08 Dec-09 Dec-10
Japan
Australia
UK
US
GDP
…but we don’t escape unscathed
![Page 8: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/8.jpg)
THE RESERVE BANK OF NEW ZEALAND
94
96
98
100
102
104
Dec-07 Dec-08 Dec-09 Dec-10
Japan
Australia
UK
US
GDP
…but we don’t escape unscathed
New Zealand
![Page 9: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/9.jpg)
THE RESERVE BANK OF NEW ZEALAND
Domestic credit growth
0
5
10
15
20
25
2004 2005 2006 2007 2008 2009
APC
AgricultureBusiness
Household
![Page 10: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/10.jpg)
THE RESERVE BANK OF NEW ZEALAND
Intended Investment & Employment
-50
-40
-30
-20
-10
0
10
20
30
00 01 02 03 04 05 06 07 08
Net %
Investment
Employment
![Page 11: 2009 Job Summit World Recession & How We Cope Alan Bollard, Governor Reserve Bank of New Zealand 27 February 2009.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551c1633550346a84f8b565d/html5/thumbnails/11.jpg)
THE RESERVE BANK OF NEW ZEALAND
How we cope
• New Zealand has some strengths but also vulnerabilities
• We will play our role
• Banks must also play a key role
• You will all be affected. We want to hear your ideas….