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Inflation and migration: Theory, evidence and implications for the Monetary Policy Committee
To successfully undertake its mandate, the Monetary Policy Committee of the Reserve Bank of New Zealand will need to take a view on the current and future effects of people flows into and out of the country. New Zealand is an outlier among OECD countries regarding both the inflow of immigrants and the outflow of citizens. As a result, the empirical results of studies undertaken in other countries may not be directly relevant. While much media and economic commentary on immigration focuses on headline net migration, that figure is composed of four separate components: arrivals and departures of citizens and arrivals ... (full story)