Some commentators in New Zealand and elsewhere have proposed similarities between the Great Depression of the early 1930s and the recession that began in 2007-08. To illuminate that discussion, this article provides brief international context before narrating selected economic data and socio-economic aspects of New Zealand’s 1930s experience during the Great Depression, arguing that the popular perception of New Zealand’s economic experience was moulded more by perceived social impact than the empirical economic data.

The MONIAC hydraulic computer is an example of a mechanical economic model dating to the 1940s. This article introduces the MONIAC and its creator, New Zealand economist Bill Phillips. Although the MONIAC is not used for policy analysis at the Reserve Bank, large-scale, practical macroeconomic modelling has long been part of our research and policy effort. Our modelling has evolved considerably in the nearly 40 years since macroeconomic modelling was introduced in the Bank, reflecting developments in economic theory and understanding of the New Zealand economy as it changes over time. In no small part, the improvement has been facilitated by the enormous increase in computing power in the decades since MONIAC was developed. The only working MONIAC in the Southern hemisphere is on display in the Reserve Bank Museum, on long-term loan from the New Zealand Institute of Economic Research (NZIER).

The Reserve Bank of New Zealand formally began operations on 1 August 1934, with responsibility for currency issue, debt management and the exchange rate. Although the establishment of the Bank can be seen partly as a response to the depression of the early 1930s, it also reflected forces that played out over much of the period following the First World War. Britain's push to see its Dominions establish their own central banks and the long-standing case for an independent New Zealand currency were both important factors shaping the debate around the case for a central bank. This article discusses these historical influences, the personalities that played a key role in the policy debate, and the events that culminated in the opening of the Bank.

In June 2003 the Reserve Bank published an inflation calculator ("the Calculator") on its website. This application enables interested users to calculate the effect of inflation on a "basket" of goods and services between two dates selected by the user. The Calculator has attracted significant attention, and well over 20,000 "hits" were recorded on the Calculator's home page during 2004. Links to the Calculator were established on a number of financial, educational and government websites, including Statistics New Zealand and the official New Zealand government historical site. This article documents an extension to the Calculator, enabling it to provide estimates of purchasing power back to 1862.

In June 2003, the Reserve Bank released a web-based inflation calculator, enabling users to select two dates and a dollar amount, and calculate an amount adjusted for inflation between those two dates. The New Zealand CPI Inflation (the Calculator) handles dates from the March quarter of 1919 up to the present day. This article discusses the functionality of the Calculator and gives examples of its uses.