Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Review of monetary policy fair, says English

Bill English National Finance Spokesman

28 February 2001

Review of monetary policy fair, says English

National's Finance Spokesman Bill English today welcomed the findings of Professor Lars Svensson, who has been carrying out a review of New Zealand's Monetary Policy.

Professor Svensson found that New Zealand's monetary policy framework is "Entirely consistent with the best international practice of flexible inflation targeting, with a medium term inflation target that avoids unnecessary variability in output, interest rates and the exchange rate".

"This review was essentially conducted in response to concerns voiced by Alliance Leader Jim Anderton. In effect it shows that his fears were unfounded, and were more a product of his own poor understanding of economics," Bill English said today.

"There have been a number of changes to the operation of monetary policy in the last few years which has seen the monetary policy framework continue to evolve as one of international best practice. For example Professor Svensson's report is critical of the period during which the bank used the MCI as its primary instrument of monetary policy. The flaws of that system were acknowledged by the Reserve Bank and remedied with the adoption of an Official Cash Rate (OCR) in March 1999.

"That is a credit to the Reserve Bank and in particular the current Governor, Dr Don Brash.

"Professor Svensson has made some recommendations around the governance and accountability structures at the Bank which I have no problem with, so long as the lines of accountability around monetary policy decisions remain clear," Mr English said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election