, creating a system to measure development capacity, providing options to intervene when development capacity falls short of what is required and improvements around the financing and provision of infrastructure. in respect of the latter, the recent government initiative to establish a housing infrastructure fund will help to relieve an important constraint. the government has also recently released its proposed national policy statement ( nps ) on urban development capacity which requires councils to ensure sufficient land supply to meet projected housing and business development needs. councils will be required to monitor developments around housing affordability, building and resource consents and the value of land on urban boundaries. they will be required to ensure price competition, coordinate infrastructure development and streamline consenting processes. the nps appears consistent with recommendations made by the productivity commission and should facilitate a greater supply of housing - ready land over time. a major supply - side milestone will be the outcome of the auckland unitary plan ( aup ) independent hearings panel, which is expected to make final recommendations to the auckland council by 22 july. the panel ’ s recommendations and the auckland council ’ s response to those recommendations will be crucial in setting the future path towards reducing the housing market imbalance. as a means of gaining further traction on the supply side, the reserve bank supports the idea of a framework for establishing urban development authorities ( udas ). these would be crown or local body entities, with powers to assemble and acquire land, accelerate planning and consent processes and oversee coordination of all the parties involved in housing development. such entities could also potentially undertake the funding and development of infrastructure. udas have been used in various forms in a number of countries including australia, the uk and the us to facilitate major housing developments in designated areas. however, by their nature, the role and powers of udas would be contentious and their creation would have to be carefully managed. while boosting the capacity for development and housing supply is paramount, it is also important to explore policies that will keep the demand for housing more in line with supply capacity. two areas for on - going consideration include tax and migration policy. on the tax front, the implementation of the bright line test for housing investors introduced in october last year has helped curb short - term speculative activity in the housing market. consideration might be given to further reducing the tax advantage of investing in residential housing. like taxation of investor - owned housing, migration policy is a complex and controversial issue. however, we cannot ignore that the 160, 000 net inflow of permanent and long - term migrants over

4 ). feldstein, m. ( 2017 ). underestimating the real growth of gdp, personal income, and productivity. journal of economic perspectives, 31 ( 2 ), 145 - 64. lisack, n., sajedi, r., & thwaites, g. ( 2017 ). demographic trends and the real interest rate. bank of england working paper no. 701. nolan, p., pomeroy, r., & zheng, g. ( 2019 ). productivity by the numbers : 2019. new zealand productivity commission. poloz, s. ( 2019 ) toward 2021 : the power — and limitations — of policy. remarks at the chamber of commerce of metropolitan montreal, quebec. powell, j. ( 2019 ) challenges for monetary policy. remarks at symposium sponsored by the federal reserve bank of kansas city jackson hole, wyoming. rice, a., vehbi, t., & wong, b. ( 2018 ). measuring uncertainty and its impact on the new zealand economy. reserve bank of new zealand analytical note series, an2018 / 01. rogoff, k. ( 2019 ). is this the beginning of the end of central bank independence? g30 occasional paper 95. vlieghe, g. ( 2019 ). monetary policy : adapting to a changed world. speech given at the 2019 mmf monetary and financial policy conference. bloomberg, london.