Dr John McDermott

Dr John McDermott

Adjunct Professor,
School of Economics and Finance


Dr McDermott completed his PhD in economics at Yale University in 1994. He is currently the Assistant Governor and Head of Economics at the Reserve Bank of New Zealand. Previously he has held full time positions at Victoria University of Wellington, the National Bank of New Zealand, and the International Monetary Fund.


BSc MCom Auckland, PhD Yale

Research interests

Commodity Prices, Business Cycles, International Finance and Monetary Policy.


  • 'Parity Reversion in Real Exchange Rates: Fast, Slow or Not at All?' (with P. Cashin) IMF Staff Papers, 2006, 53 (2006), pp. 64-89.
  • 'Would Adopting the Australian Dollar Provide Superior Monetary Policy in New Zealand', (with A. Drew, V. Hall, and R. St Clair), Economic Modelling, 21 (2004), pp. 949-964.


  • 'Terms of Trade Shocks in Africa: Are They Short-lived or Long-lived?', (with P. Cashin and C. Pattillo) Journal of Development Economics, 73 (2004), pp. 727-744.
  • 'Testing for Asymmetric Price Stickiness using NZ Business Opinion Data: A Bootstrap Approach', (with K. Balcombe) Applied Economics Letters, 10 (2003), pp. 955-58.
  • 'An Unbiased Appraisal of Purchasing Power Parity', (with P. Cashin) IMF Staff Papers, 50 (2003), pp. 321-351.
  • 'Intertemporal Substitution and Terms of Trade Shocks', (with P. Cashin) Review of International Economics, 11 (2003), pp. 604-618.
  • 'Riding on the Sheep’s Back: Examining Australia’s Dependence on Wool Exports', (with P. Cashin) Economic Record, 2002, 78, 249-263.
  • 'The Long-Run Behaviour of Commodity Prices: Small Trends and Big Variability,' (with P. Cashin), IMF Staff Papers, 49 (2002), pp. 175-199.
  • 'Terms of Trade Shocks and the Current Account: Evidence from Five Industrial Countries', (with P. Cashin), Open Economics Review, 13 (2002), pp. 219-235.
  • 'Booms and Slumps in Commodity Prices', (with P. Cashin and A. Scott) Journal of Development Economics, 69 (2002), pp. 277-296.
  • 'Intertemporal Consumption Smoothing and Capital Mobility: Evidence from Australia', (with P. Cashin), Australian Economic Papers, 41 (2002), pp. 82-98.
  • 'How Persistent are Shocks to World Commodity Prices?', (with P. Cashin and H. Liang) IMFStaff Paper, 47 (2000), pp. 177-217.
  • 'Macroeconomic Fluctuations in Developing Countries: Some Stylized Facts', (with P. R. Agenor and E. S. Prasad), World Bank Economic Review, 14 (2000), pp. 251-285.
  • 'Consumption Smoothing and the Current Account: Evidence for France, 1970-96', (with P. R. Agenor, P. Cashin, and C. Bismut), Journal of International Money and Finance, 18 (1999), pp. 1-12.
  • 'Are Australia’s Current Account Deficits Excessive?', (with P. Cashin), Economic Record, 74 (1998), pp. 346-361.
  • 'Testing the Expectations Model of the Term Structure in Times of Financial Transition', Applied Financial Economics, 8 (1998), pp. 663-669.
  • 'Testing the Consumption-CAPM in Developing Equity Markets', (with P. Cashin), International Journal of Finance and Economics, 3 (1998), pp. 127-141.
  • 'Fiscal Imbalances, Capital Inflows, and Real Exchange Rates: The Case of Turkey', (with P. P. Agenor and M. Ucer), European Economic Review, 41 (1997), pp. 819-825.
  • 'Does the Gap Model Work in Asia?', (with D. Coe), IMF Staff Papers, 44 (1997), pp. 59-80.
  • 'An Empirical Analysis of Fiscal Adjustment', (with R. F. Wescott), IMF Staff Papers, 43 (1996), pp. 725-753.
  • 'Nonlinear Econometric Models with Deterministically Trending Variables', (with D.W.K. Andrews), Review of Economic Studies, 62 (1995), pp 343-360.
  • 'Excess Volatility: A Testing Strategy', Economics Letters, 44 (1994), pp. 35-41.
  • 'Cointegration: Origins and Significance for Economists', New Zealand Economic Papers, 24 (1990), pp. 1-23.
  • 'Exogeneity in the New Zealand Money-Income Relationship', (with A. Wong), New Zealand Economic Papers, 24 (1990), pp. 24-41.
  • 'Consumption of Durables, Non-Durables and Services in New Zealand: A System Wide Analysis', (with A. Wong), New Zealand Economic Papers, 24 (1990), pp. 115-127.


  • 'Properties of International Commodity Prices: Identifying Trends, Cycles, and Shocks', (with P. Cashin) in Agricultural Commodity Markets and Trade: New Approaches to Analyzing Market Structure and Instability, Edited by Alexander Sarris and David Hallam, Food and Agriculture Organization of the United Nations, Italy , 2006.
  • 'A Test of the Response to a Monetary Policy Regime Change in New Zealand', in Contemporary Studies in Economics & Financial Analysis, Volume 86 - Asian Pacific Financial Markets in Comparative Perspective: Issues and Implication for the 21 st Century , edited by Thomas A. Featherstone and Jonathan A. Batten, (with B. Petro and D. Tripe), 2005, pp. 453-467.
  • 'Macroeconomic Environment and Factors Underlying Growth and Investment', in E. Maciejewski and A. Mansur Jordan: Strategy for Adjustment and Growth, IMF Occasional Paper 136, 1996.
  • 'Experiments with the Long-Run Version of the RBNZ Model of the New Zealand Economy', (with R. Brooks), in Long-Run Perspectives on the New Zealand Economy, Vol. 2, Edited by L. Evans, J. Poot and N. Quigley, (1991), pp. 306-324.

Other academic publications

  • 'How New Zealand Adjusts to Macroeconomic Shocks: Implications for Joining a Currency Area', (with S. McCaw), Reserve Bank of New Zealand Bulletin, 63 (2000), pp. 35-51.
  • 'Do Commodity Price Shock Last too Long for Stabilization Schemes to Work?', (with P. Cashin), Finance and Development, 36 (1999), pp. 40-43.
  • 'Issues Relating to Optimal Currency Areas: Theory and Implications for New Zealand', (with D. Hargreaves), Reserve Bank of New Zealand Bulletin, 62 (1999), pp. 16-29.
  • 'Export Performance after Depreciation', (with L. Bonato and S. Comber), Reserve Bank of New Zealand Bulletin, 62 (1999), pp. 37-43.
  • 'Fiscal Reforms that Work', (with R. F. Wescott), Economic Issues (IMF: Washington D.C.), November 1996.