The Monetary Policy Challenge (MPC) provides New Zealand secondary school students an exciting opportunity to put themselves in the shoes of Reserve Bank economists and recommend what the Official Cash Rate could be. Operating with the same information as the Reserve Bank, numerous teams assess the economic conditions facing New Zealand and the outlook for inflation. Based upon their own assessment of the economy, each team decides on an appropriate setting for the Official Cash Rate.
The Monetary Policy Challenge links to NCEA achievement standard: Economics 3.5 (AS 91403).
The Reserve Bank reviews the Official Cash Rate eight times a year and also issues Monetary Policy Statements four times a year. Students partaking in the Monetary Policy Challenge consider the same information as Reserve Bank economists. They will also recommend whether the Official Cash Rate should go up, down, or remain the same.
Each team's presentation should demonstrate a comprehensive understanding of monetary policy and how the New Zealand economy works. The presentation should be supported by sound reasoning that takes into account current economic conditions, both domestic and international.
The presentation is conducted online via videoconference with the competition judges consisting of two Reserve Bank economists. The judges choose six national finalists, who present in person in Wellington and compete for the national title.
Last update April 2020: Due to the uncertainties brought about by COVID-19, we have decided to postpone this year’s Monetary Policy Challenge. If you have any queries or concerns, please email firstname.lastname@example.org.
For more information visit the official website here.
This is a national competition, it is open to all New Zealand schools and therefore the level of competitiveness is limited to a national level. However because any secondary student can enter, there may be a large amount of applicants, thus increasing the competitiveness.
There may be some costs involved with the finalists traveling to Wellington. There is no application fee.
A high proficiency of knowledge in economics.
The submission begins in March, and the presentation process take place from May to July.
The competition is open to any secondary school in New Zealand. Schools may enter one team and all members of that team must be enrolled at the school as students.
Before entering the competition, please talk advise your teacher as you will need their support during the competition. Teams must have between three and five students, with one assigned to the role of Governor. A teacher needs to accompany teams to the national final.