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


About time: A Small Chink In Monetary Orthodoxy



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.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Wellington.Scoop: Serco – First The Prisons, And Now It Wants To Run The Trains

As the government continues its inquiry into Serco’s discredited administration of Mt Eden prison in Auckland, here in Wellington there’s further scrutiny of the British outsourcing company – because it’s competing to take over the running of our commuter trains. More>>


Gordon Campbell: On The TPP Countdown, And Mary Margaret O’Hara

To date, the Key government has been unwilling to share any information about this TPP deal until it is too late for outraged public opinion to affect the outcome... the disclosure process is likely to consist of a similarly skewed and careful exercise in spin. More>>


Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Key In NY: Prime Minister Addresses United Nations

    Prime Minister John Key has addressed the United Nations General Assembly in New York, focusing on a call for action in Syria and on other conflicts, reform of the veto process and on the UN’s Sustainable Development Goals. More>>.


    Gordon Campbell: On The Lack Of Accountability Over Philip Smith

    In New Zealand, accountability is an exotic creature rarely glimpsed at ministerial level, or among senior management. The flight to Rio by the paedophile /murderer Philip John Smith/Traynor is no exception. More>>


    More On Corrections

    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news