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

 


About time: A Small Chink In Monetary Orthodoxy


David

PARKER

Spokesperson for Finance

6 December 2012 MEDIA STATEMENT

About time: A Small Chink In Monetary Orthodoxy

Reserve Bank Governor Graeme Wheeler’s admission today that he is negotiating the use of macro-prudential tools shows the Government is finally conceding that its orthodox monetary policy needs to change, says Labour’s Finance spokesperson David Parker.

“For years National has defended its orthodox monetary policy as ‘world’s best practice’. But the world has moved on since the financial crisis and the old orthodoxies are changing.

“National now finally appears ready to consider some changes. It’s about time too.

“This move is partly due to pressure from opposition parties, including three years of agitation by Labour.

“Graeme Wheeler said today that the Reserve Bank and the Government are negotiating a new memorandum of understanding that would include macro-prudential tools, such as loan-to-value ratios, to lean against asset bubbles and reduce reliance on the interest rate lever.

“The Government has decried changes to its monetary policy – one of the most orthodox in the world – as voodoo economics. This is despite a chorus of calls for change from exporters, businesses, opposition parties and some economists.

“Now, belatedly, it appears to have recognised that the world has moved on.

“These changes are far from all that is necessary. The biggest problem is still the primacy given to inflation targeting ahead of other important matters of economic management like employment and the exchange rate.

“Changes are needed to the Reserve Bank Act to ensure the Bank can give proper weight to these other matters which are crucial to exports and jobs.”


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

17 Year Sentences In Baby Moko Case: Attorney General On Plea Bargain

“The Crown’s decisions in this case, including the decision to accept the manslaughter pleas, were motivated by the need to secure convictions for this horrendous killing and to avoid the significant risk that either of the defendants could escape such a conviction because of evidential issues.” More>>

ALSO:

No Rail For New Harbour Crossing: National Giving Up On Rail In Auckland

The National Government’s decision to scrap two planned rail lines in Auckland shows it is giving up on a city-wide rail network in Auckland, and on thousands of commuters who sit in traffic jams every single day, the Green Party said today. More>>

ALSO:

Gordon Campbell: On The Ombudsman’s Verdict On Paula Rebstock And Ian Rennie

Unfortunately, the brave and damning report by Ombudsman Ron Paterson on the “flawed” and “unfair” inquiry conducted by Dame Paula Rebstock into events at MFAT pulls back the veil on a far wider issue. More>>

ALSO:

Charities' Report: Stressed Families - Overstretched Services

“Like so many of the whānau and families they serve social service organisations are under huge financial stress. The support demanded from desperate people in communities is far outreaching the resources available.” More>>

ALSO:

Detention: Wellingtonians Protest Treatment Of Refugees

Peace Action Wellington (PAW) and around 50 Wellingtonians blockaded the Australian High Commission, creating a symbolic detention centre to protest the Australian Government's policy of mandatory offshore detention for refugees and asylum seekers. More>>

ALSO:

Diver's Alarums: Breach Means Training Provider Must Repay $1.47 Million

The New Zealand School of Outdoor Studies is to repay $1.47 million (GST-exclusive) to the Tertiary Education Commission (TEC) following an investigation which showed that some student enrolments between 2009 -2014 could not be validated and that courses were under-delivered against their agreement with the TEC. More>>

ALSO:

Education: Government Plans Suggest Bulk Funding Return

Plans by the Government to return to bulk funding are likely to see increased class sizes and schools most in need missing out on much-needed resources, Labour’s Acting Education spokesperson Grant Robertson says. More>>

ALSO:

Interim Report: Auckland Looks Long Term To Pay-Per-Km Road Pricing

Aucklanders can expect to be paying variable rates per kilometre to travel on the city's most congested roads under an emerging transport strategy being formulated by the government and the Auckland Council. More>>

ALSO:

Despite Promises: Government Extends Iraq Deployment

Cabinet has agreed to extend New Zealand’s contribution to the joint New Zealand-Australia mission to train Iraqi Security Forces until November 2018. More>>

ALSO:

On The 'Terrorism' Card:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news