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

 


Greens seek more pragmatic approach to monetary policy

6 December 2012

Greens seek more pragmatic approach to monetary policy

A cut in the Official Cash Rate (OCR) would have eased pressure on the overvalued exchange rate, helping to rebalance the economy towards exports and manufacturing, the Green Party said today.

A lower Official Cash Rate (OCR) is likely to lead to lower domestic interest rates which, in turn, will take pressure off our overvalued exchange rate, helping exporters and manufacturers who compete with imports.

“Graeme Wheeler had scope to cut the OCR today as a first step to addressing our overvalued currency and seriously unbalanced economy,” Green Party Co-leader Dr Russel Norman said.

“As Wheeler himself said in his statement accompanying his decision, ‘The high New Zealand dollar continues to be a significant headwind, restricting export earnings and encouraging demand for imports.’

“The overvalued New Zealand dollar is hurting exporters and manufacturers who compete with imports – one of the main drivers of massive job losses in this sector.

“A more pragmatic use of the OCR, combined with the use of other macro-prudential tools to manage specific inflationary pressures, would mean monetary policy could be used to address the fundamental imbalances faced by the New Zealand economy, reflected in our worsening current account deficit.”

Dr Norman renewed his calls for wider reform of the Reserve Bank mandate and the way the Reserve Bank makes it decisions around the Official Cash Rate.

“No other country in the OECD gives full responsibility for the OCR decision to one person – the Reserve Bank Governor,” Dr Norman said.

“This is completely antiquated. It leads to poorer decisions – decisions which don’t reflect the wider economic interests at stake when the Official Cash Rate is set.

“We’d bring the Bank into the twenty-first century by making the Reserve Bank Board accountable for setting the Official Cash Rate, while ensuring the Board includes representatives from the export and manufacturing sectors.”


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Missed Opportunities: Amnesty International Report Card On NZ's UN Role

As New Zealand steps down from its month as President of the Council, Amnesty International has taken the opportunity to review New Zealand’s role on the Council so far and assess their performance and contribution to protecting human rights worldwide. More>>

ALSO:

Prince Charles Get More Jobs: PM Announces Honorary Military Appointments

PM John Key has announced that Her Majesty The Queen has approved the appointment of HRH The Prince of Wales to three honorary positions: Admiral of the Fleet of the Royal New Zealand Navy; Field Marshal, New Zealand Army; Marshal of the Royal New Zealand Air Force. More>>

ALSO:

No TPP Deal: Gordon Campbell On Why We Should Still Oppose Investor-State Dispute Measures

Even in this dark hour for the TPP, the secrecy farce continues... What is left to hide? Every single negotiator went into those talks in Maui knowing exactly where everyone else stood. More>>

REACTION:

Salvation Army On Homelessness: Hard Times In West Auckland

The report details an uncomfortable story of people whose only option is to live an unhealthy, dangerous and damaging street life... The social housing needed by these people is not currently available in sufficient quantity. More social housing is required in the West. More>>

ALSO:

Message For PM: NZ Supports Te Reo Māori – You Should Too

As Māori Language Week celebrations and commemoration of 40 years draws to an end, the Māori Language Commission, Te Taura Whiri i te Reo Māori, is once again hugely encouraged by the widespread support for Māori language from throughout the country ... More>>

ALSO:

Arming Police: Frontline Police To Routinely Carry Tasers

"In making the decision, the Police executive has considered almost five years worth of 'use of force' data… It consistently shows that the Taser is one of the least injury-causing tactical options available when compared with other options, with a subject injury rate of just over one per cent for all deployments." More>>

ALSO:

Gordon Campbell: On D-Day For Dairy At The TPP

While New Zealand may feel flattered at being called “the Saudi Arabia of milk” it would be more accurate to regard us as the suicide bombers of free trade. More>>

ALSO:

Leaked Letter: Severe Restrictions on State Owned Enterprises

Even an SOE that exists to fulfil a public function neglected by the market or which is a natural monopoly would nevertheless be forced to act "on the basis of commercial considerations" and would be prohibited from discriminating in favour of local businesses in purchases and sales. Foreign companies would be given standing to sue SOEs in domestic courts for perceived departures from the strictures of the TPP... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
More RSS  RSS News AlertsNews Alerts
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news