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

Open Source // Open Society - Full Coverage

War: What’s To Commemorate?

Gordon Campbell in Werewolf: It is easy to know what we don’t want to commemorate on Anzac Day this year...

In fact, is there anything that can be validly commemorated on this 100th anniversary of Gallipoli?

Beyond, that is, a fleeting sense of empathy with the thousands of soldiers killed or wounded on April 25 1915 and in the months thereafter, until the whole thing was finally called off in December 1915.

(Most of the New Zealand survivors were transferred to the trenches in France, and eventually to the battle of the Somme in 1916.) More>>

 

PARLIAMENT TODAY:

Gordon Campbell: On The Battle Obama Is Waging Over The TPP

For the past two and a half years, this column has been arguing that the fate of the Trans Pacific Partnership (TPP) deal will hinge on whether US President Barack Obama can win Trade Promotion Authority (TPA) from Congress... Last week, the White House finally, finally unveiled a draft TPA Bill. More>>

ALSO:

Greens: Govt Breaks Free Doctors Visit Promise To Kids

Documents obtained by the Green Party show that the Government decided to fund only 90 percent of doctors’ visits for children suffering from an injury in an attempt trim the cost of the so-called “free” visits. More>>

ALSO:

Other Wars: Extension Of NZDF Commitment In Afghanistan

The New Zealand Defence Force’s commitment of mentors and support staff to the Afghan National Army Officer Academy in Afghanistan has been extended out to December 2016, Defence Minister Gerry Brownlee says. More>>

PM's Press Conference: Auckland Property Prices Increasing "Too Rapidly"

John Key accepted that Auckland property prices 'are going up too rapidly” in a press conference held today in Wellington, however he said that this is not anything new. More>>

ALSO:

Press Conference: ANZAC PMs Concerned About ISIL Bringing The War Home

Prime Minister Key and Prime Minister Abbott spoke of the bond formed between Australia and New Zealand in the “baptism of fire” of Gallipoli. Abbott stated that New Zealand and Australia’s values and interests are linked, and this is reflected in the joint operation in Iraq which will begin shortly. More>>

ALSO:

GCSB's China Shopping: Key Damages China Relationship

Evidence that the Key Government recklessly approved a GCSB spying operation to intercept Chinese diplomatic communications between offices in Auckland will pointlessly damage our relationship with China, the Green Party said today. More>>

ALSO:

Gordon Campbell: On The Reserve Bank And Auckland Housing

The ‘crisis – what crisis?’ response by the government to the Auckland housing price bubble is no longer acceptable. So says Reserve Bank governor Grant Spencer... More>>

ALSO:

Troops Heading To Iraq: Government Must Come Clean On Deployment

New Zealanders deserve more than to hear about their troops’ deployment overseas from Australian media, Opposition Leader Andrew Little says. “News from Australia that Kiwi troops are on their way to Iraq this week is another example of the culture of secrecy and unknown protections around the deployment.” More>>

ALSO:

Image: Strikers And Protestors Join Outside McDonald's

A group of protestors took to McDonald’s Manners St today as a part of the international fast food workers day of action to end zero hour contracts. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news