Parliament

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

Another Leader Exiting: Statement From Peter Dunne

I have concluded, based on recent polling, and other soundings I have been taking over the last few weeks, that, the volatility and uncertainty notwithstanding, there is now a mood amongst Ōhāriu voters for a change of MP, which is unlikely to alter...

“I have therefore decided that it is time for me to stand aside, so the people of Ōhāriu can elect a new electorate MP. More>>

 

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>

ALSO:

Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election