User talk:NolanNZ

The removed paragraph is factually inaccurate. As an economist that works in New Zealand, and has spent a lot of time discussing the terms of trade, this is completely false.

Any impact on the TOT from the exchange rate is second order at best - the exchange rate enters on both export prices AND import prices, and it is a ratio.

The Reserve Bank is responding to the inflationary impact of the terms of trade, it does not create the terms of trade increase. Furthermore, I have seen NO peer reviewed literature that would suggest this is the case. If anyone wishes to talk about interest rates and exporters the appropriate place is in exchange rates - when talking about exchange rate volatility - not the terms of trade article.