Great Moderation was a global phenomenon marked by stable economic growth and inflation. However, how much monetary policy contributed to its success remained as a popular debate in the literature. Answering this question became more important after global financial crisis – and the recent COVID-19 pandemic- since global conditions became relatively more important than past even under same policy stance. I examined the recent macroeconomic history of New Zealand through the lens of a regime switching structural vector autoregression model to understand the contributions of domestic monetary policy and global conditions to its macroeconomic stabilization. I also show that the small open economy structure is especially important to facilitate the identification of structural shocks that spillover from globe.