The New Zealand economy has performed well since bouncing back from

the effects of 1997’s Asian crisis. Growth rates were above 5 per cent per year

through 1999 and early 2000 and, after a brief pause in 2000, continued to hold up

reasonably well last year. The country has been riding on a terms of

trade boom, as the prices of its major exports were out of line with general global

commodity prices until late in 2001. It has also enjoyed the rare combination

of having a weak exchange rate at the same time as high export prices, so

prices in local-currency terms were extraordinarily favourable. ...