Parliament

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.

Ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

NZEI: Primary Teachers And Principals Vote To Reject Offers

Primary teachers and principals have resoundingly rejected the Government’s latest collective agreement offers...

NZEI Te Riu Roa President Lynda Stuart said members had sent a clear message that the offers did not address concerns about the growing teacher shortage, time to teach and support for children with additional learning needs. More>>

 

No Confidence In GWRC: Bus Drivers Vote For Strike Next Month

The Wellington Tramways Union today voted overwhelmingly for bus drivers to strike because of the breakdown in negotiations with the Wellington bus operators. More>>

ALSO:

Unanimous: MP Pay Freeze Bill Passes

“The Remuneration Authority (Members of Parliament Remuneration) Amendment legislation, to freeze the pay of MPs for one year, has been passed unanimously by the House today." More>>

Gordon Campbell: On The Party Of No Ideas

The striking thing about the issues that have had political coverage over the past few months is the almost total lack of policy content to any of them. To date, Her Majesty’s Opposition have been entirely focussed on failings in Beehive management.. More>>

ALSO:

America's Cup: Environment Court Grants Consents

Auckland Mayor Phil Goff says, “I welcome today’s decision by the Environment Court to grant consent for the bases and associated infrastructure to host the 36th America’s Cup." More>>

ALSO:

Gordon Campbell: On Bridges’ ‘Meth Crooks’ Leadership Failure

Back in June, Bridges publicly accepted that Housing NZ had got it wrong, and that the National government had acted upon bad advice. Now, you’d think this admission would create a broad bi-partisan basis for compensation to those families who had been unfairly evicted... More>>

ALSO:

Medical: New Surgical Mesh Safeguards

The Government has introduced strict new safeguards on the use of surgical mesh that are expected to limit its use in urogynaecological surgery. More>>

ALSO:

Handley Handling: Fired Chief Technology Officer Releases Communications

In the interests of drawing a line on this issue, today I am releasing a detailed timeline of events and all of the emails and texts between myself and Clare Curran, and myself and the Prime Minister about the role and my move back to New Zealand. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels