New Zealand Dollar - Inflation and Deflation

Inflation and Deflation

Because the New Zealand dollar has been a fiat currency for such a long time, very large and long term rates of inflation are possible. As an example, on the television series "Pioneer House" Set at approximately 1900 (TVNZ, 2001), the #2 Grey Lynn, Auckland house sold originally for 200 New Zealand pounds (£1 was equal to $2 when New Zealand moved to decimal currency) but as of 2001 sold for NZ$321,000.