Three John McGlashan College pupils will represent Otago and Southland in the Reserve Bank of New Zealand's 2012 Monetary Policy Challenge next week.
Joe Ascroft, Mitch Heslip (both year 13) and Ed Davies (year 12) won the Southern regional final and will compete against five other schools from throughout New Zealand in the national final at the Reserve Bank in Wellington next Thursday.
The challenge is designed to expand senior secondary school economics pupils' understanding of monetary policy.
Just like economists working in the Reserve Bank, each team analysed the economic conditions facing New Zealand and the outlook for inflation.
On the basis of that analysis, they decided on an appropriate setting for the official cash rate.
This year, the teams' presentations focused largely on key factors influencing the economy, such as the uncertainty in Europe, the Government transition to a budget surplus and falling commodity prices.
The judges praised the John McGlashan College pupils for their high level of comprehension and strong knowledge of economic theory.
They were particularly impressed with the way the team was able to take the theory and apply it to a wide range of real world topics and economic issues.
The boys are now preparing to compete in Wellington for a $2500 cash prize for their school and an invitation to the Reserve Bank on September 13, to watch the governor announce the monetary policy statement.
