Reserve Bank Monetary Policy Challenge

The Challenge is open to all NZ senior secondary school economics students. It is designed to expand students’ understanding of monetary policy and links to NCEA achievement standards.

The challenge involves students becoming, in effect, central bankers. Just like economists working in the Reserve Bank, each team analyses the economic conditions facing NZ and the outlook for inflation.

On the basis of that analysis, they decide on an appropriate setting for the Official Cash Rate (the Reserve Bank’s interest rate).

Teams present the reasons for their decision in a written submission and, if selected as a regional finalist, give an oral presentation. Regional finals will be held in Dunedin, Christchurch, Wellington, Hamilton and Auckland during August.

The winning team from each region will be invited to the Reserve Bank to compete in the national final, to be held on 27th August, 2009.

The winner of the national final will receive a cash prize and its team will be invited to attend the Monetary Policy Statement release in Wellington on 10th September 2009.

Past winners of the competition have included Scots College, Wellington (2008), New Plymouth Girls’ High School (2007) and St Kentigern College, Auckland (2006).

Reserve Bank governor Alan Bollard commented: “This competition brings to life for students the dilemmas that central bankers face. Rather than just expecting students to learn established facts, this competition confronts students with the challenge, ambiguity and uncertainty of actual decision-making.”

To help with their assessment of the economy and the outlook for inflation, participants will have access to up-to-date economic data via the Reserve Bank’s website at www.rbnz.govt.nz/challenge

Entries close on 3rd April, 2009, and an information pack has been sent to each secondary school. The Challenge is run annually and began in 2002.