Parliament

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

 

Reserve Bank ignoring growing economic imbalances

20 February 2013

Reserve Bank ignoring growing economic imbalances

The Reserve Bank continues to ignore growing imbalances in the economy and the slow hollowing out of the productive sector, said Green Party Co-leader Dr Russel Norman today.

Dr Norman was responding to the Reserve Bank Governor’s speech to the Manufacturers and Exporters Association today.

“The Governor today restated the Bank’s siloed thinking about the wider economy, failing to show leadership around how the Reserve Bank can use the tools available to it to help rebalance the economy,” said Dr Norman.

“Graeme Wheeler outlined important long-term steps for our economy around savings and labour productivity but completely dodged how he can help today with the tools available to him.

“Good jobs are worth fighting for.

“This current economic recovery is being led by the property and retail sectors rather than the manufacturing, import competing, and export sectors.

“The current account balance – a measure of how we’re living within our means – is in deficit and forecast to deteriorate further.

“The Reserve Bank has chosen to ignore the quality of the emerging economic recovery and has been slow to develop new tools to prevent history repeating itself – a credit-fuelled housing bubble and ballooning current account deficit.”

The Green Party have a number of proposals to help rebalance the economy including: a lower Official Cash Rate (OCR), complementary tools to manage house price inflation, a comprehensive capital gains tax (excluding the family home), and limited quantitative easing to help finance the Christchurch rebuild.

“These kinds of tools are being used all around the world and are being advocated for by organisations as disparate as the IMF and UK Financial Services Authority. But our Reserve Bank appears to be trapped in a time warp from the 1980s; shoulder pads have had their day, and so has targeting monetary policy solely at inflation,” said Dr Norman.

Link to Reserve Bank speech:

http://www.rbnz.govt.nz/speeches/5150125.html


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

South Island Flooding: Focus Moves To Recovery

As water recedes throughout flood-impacted areas of the South Island, Minister of Civil Defence Nathan Guy has praised the efforts of those who were involved in the response to the flooding.

“Civil Defence Emergency Management Groups have acted proactively and decisively to keep people and property out of harm’s way,” says Mr Guy. More>>

 

Employers Pleased: Reports Of Govt Backdown On Low-Wage Immigration

MEA: We are pleased to hear that the Government is planning to review incoming immigration changes with a specific focus on how they will affect the regions. Effectively addressing skills shortages in manufacturing and other sectors needs to remain a core part of our immigration system ... More>>

ALSO:

Gordon Campbell: On The Ch-Ch-Changes At IRD

Job cuts aren’t happening at the IRD, exactly. Instead, there’s apparently a ‘transformation’ in store, and jobs won’t be axed ; no, they will be ‘transformed’ before our eyes into… non-jobs, if you happen to be among the unlucky legion of 1,900 who are being lined up for transformation... More>>

ALSO:

Christchurch Mental Health: Hospital Too 'Awful' For Reviewers To Visit

Jonathan Coleman has to stop the stalling over a new building for mental health services in Christchurch to replace the quake damaged Princess Margaret Hospital, says Labour’s Health spokesperson David Clark... More>>

ALSO:

Greens Call For Govt Action: Children Sick Because Of NZ Housing

The Royal Australasian College of Physicians president-elect said today that children with preventable respiratory illnesses are being re-admitted to hospital because they're being sent back to cold, damp homes. More>>

ALSO:

Less Tax Cut, More Spending: Labour Launches Fiscal Plan

“Labour will invest $8 billion more in health, $4 billion more in education and $5 billion more for Kiwi families through Working for Families, Best Start and the Winter Energy Payment than the Budget 2017 projections for the forecast period.” More>>

ALSO:

Gordon Campbell: On The Greens’ Room For Political Pragmatism

The Greens here are currently being criticized by the commentariat for not making the same kind of pragmatic choices that sunk the Democrats in Australia. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog