Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search

 


Reserve Bank opts for ideology over jobs

31 January 2013
Reserve Bank opts for ideology over jobs

The Reserve Bank decision to keep the Official Cash Rate (OCR) unchanged today will hurt the productive economy and result in further job losses, the Green Party said today.

In its statement today, the Reserve Bank admitted that inflation remained subdued and was below the bottom of the Bank’s inflation target range. The Bank also admitted that the overvalued currency is “undermining profitability in export and import competing industries”.

“By not cutting the OCR today, Graeme Wheeler is helping to wreck our export and manufacturing sectors and the valuable jobs they create,” Green Party Co-leader Dr Russel Norman said.

“A lower OCR would have taken pressure off our overvalued exchange rate, helping exporters and manufacturers who compete with imports.

“Graeme Wheeler needs to roll up his sleeves and start fighting for New Zealand’s productive economy.

“Simply talking about our overvalued dollar is no longer enough. In fact, the dollar rose even further after his announcement today.”

Dr Norman today released a Reserve Bank paper that shows that the Bank has been discussing complementary tools to the OCR since at least May last year. The Bank believes introducing loan-to-value ratios would reduce house price inflation.

“The Reserve Bank has known since at least the middle of last year that complementary tools, like loan-to-value ratios, could be used to control house price inflation which then give the Bank greater room to cut the OCR to help rebalance the economy and create jobs,” Dr Norman said.

“The Reserve Bank can use the multiple tools at its disposal to control house price inflation while lowering interest rates to bring down the dollar and give exporters a break.

“Other central banks are following such smart policies, but New Zealand seems to have one of the most ideologically rigid central banks in the world, costing our economy exports and, most importantly, jobs.”

Link to Reserve Bank document “Alternative Policy Instruments”:
http://www.greens.org.nz/sites/default/files/reserve_bank_alternative_policy_instruments_may_2012.pdf


© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Gordon Campbell: On The West’s Existential Crisis About What To Do With Putin, And The Islamic State

Say one thing for Russian President Vladimir Putin. At least he’s given NATO a purpose in life. Right now, that consists of being something that Barack Obama and David Cameron can hide behind, point at Putin, and say : “Go get him, tiger.” Just what NATO is supposed to do about Putin’s armed advance into eastern Ukraine is less than clear. But there is a lot of “steely determination” around in high places. More>>

Gordon Campbell: On The US Foreign Policy Somersaults Over Syria And Iran

Amidst the day-to-day reports about the military advances of the Islamic State fighters in Iraq and Syria, one remarkable aspect of this war has barely been mentioned. More>>

ALSO:

Daphne Lawless: The Whale Oil Leaks: Anti-Politics From Above

As we go to press, the election campaign has been turned upside down by a new book by investigative journalist Nicky Hager. Dirty Politics is based mainly on a leak of 2 gigabytes of emails and Facebook messages from “Whale Oil”, the vicious ... More>>

ALSO:

Branko Marcetic: When John Key Was Concerned About Dirty Politics

If Nicky Hager needs some support in the midst of a whirlwind of government criticism for his allegations of “dirty tricks” by the National Party, he may find one unlikely ally – John Key, six years ago. More>>

Jim Miles: Israeli War Crimes In Gaza

Israel reveals its true colours and true aspirations every time it attacks Gaza (or any other self-perceived enemy) as being the ethnic cleansing of Palestine, even to the degree - as the references above indicate - to the act of genocide. More>>

David Swanson: Top 9 Reasons To Stop Bombing Iraq

1. It's not a rescue mission. The U.S. personnel could be evacuated without the 500-pound bombs. The persecuted minorities could be supplied, moved, or their enemy dissuaded, or all three, without the 500-pound bombs or the hundreds of 'advisors' (trained ... More>>

Binoy Kampmark: Comedian’s Death: Robin Williams And The Virtues Of Suicide

The Grim Reaper never runs out of converts. Put another way, death never gets his full due. Comedians do not figure well in this – they are particularly attractive targets in the business of death. More>>

Suzan Mazur: "Oomph" & Origin Of Life At Hydrothermal Vents

The notion that life originated in hydrothermal vents was for a long time a sleepy area of scientific inquiry because the vents first found, known as 'black smokers,' were way too hot and acidic. But in 1989, Michael Russell, a British geochemist who ... More>>

Get More From Scoop

 
 
 
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news