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


Monetary policy was right - Brash

Don Brash National Finance Spokesman

19 September 2002

Monetary policy was right - Brash

A briefing note released by the Reserve Bank today on the Policy Targets Agreement directly challenges many of the assertions made by the Finance Minister about the recent operation of monetary policy, says National's Finance spokesman Don Brash.

"In particular, the briefing note finds that monetary policy in New Zealand is not noticeably more aggressive than elsewhere.

"This completely contradicts comments lately from Michael Cullen suggesting that recent monetary policy experience in New Zealand has been overly aggressive.

"In fact, the Reserve Bank goes on to say that research suggests that had the United States Federal Reserve or the Reserve Bank of Australia been running monetary policy in New Zealand over recent years, their interest rate decisions would have been broadly similar.

"The Bank also finds recent research suggests low inflation rates are likely to be beneficial for growth and that monetary policy in New Zealand has been stabilising for the economy.

"These findings support the Government's own review of monetary policy carried out by Professor Lars Svensson who found twelve months ago that "the Reserve Bank's current conduct of monetary policy 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"

"Dr Cullen's tinkering with the Policy Targets Agreement will do nothing to achieve higher economic growth. In fact, given the risk of higher trend inflation, it is more likely to be harmful to growth," said Dr Brash.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

KiwiBailed: KiwiBuild Head Officially Resigns

The head of Kiwibuild, Stephen Barclay has officially resigned from the role. In a statement issued on his behalf, it was announced that he would step down from today [Friday].

Housing Minister Phil Twyford's office said he would not be commenting on Mr Barclay's resignation as it was an employment matter. Last month, Mr Twyford confirmed that Mr Barclay had not been at work for a number of weeks. More>>


Welfare Stats: Rise In Hardship Numbers Shows Income Inadequacy

The latest Ministry of Social Development quarterly report show that a record number of people have received hardship assistance from work and income, with an additional 40,000 hardship payments made between September and December 2018, compared to the previous quarter of the same year... More>>


DHBs "Prepared": Junior Doctors Strike Again

The needs of acute patients will be met during tomorrow's junior doctor strike, a DHB spokesperson says... Almost 3000 junior doctors are expected to walk off the job, which will affect all DHBs apart from West Coast District Health Board. More>>


Gordon Campbell: On MBIE’s Social Media Scam

Given the ambit of MBIE’s work, almost any form of social activity could qualify as being part of MBIE’s brief, so the privacy threats posed by this training programme are extensive. The current oversight safeguards seem threadbare to non-existent. More>>


JusTrade: New Campaign For A 21th Century Trade Agenda

‘Critique is no longer enough. If anything is to really change, we need to step away from the existing framework and take a first-principles approach to rethinking what will work for the 21st century.’ More>>


Gordon Campbell: Thompson + Clark Are The Tip Of The Iceberg

How can we tell where and how any lines are being drawn? Oversight is not exactly robust. If it were, Thompson + Clark would have been out of contention for state security work ten years ago. More>>

Trainers: Taratahi Institute of Agriculture In Interim Liquidation

Taratahi employ 250 staff and this year has provided education to over 2500 students. Taratahi owns and manages 8 farms throughout the country. More>>


IPCA Report: Complaints About Deputy Commissioner Wallace Haumaha

The Authority has found that DC Haumaha acted improperly by approaching staff and others to provide information to support him to refute the allegations about his 2016 conduct, or solicited other staff to do so on his behalf... More>>





InfoPages News Channels