Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

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

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.