Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

New ideas to manage the exchange rate welcomed

New ideas to manage the exchange rate welcomed
 
The CTU strongly supports taking initiatives to bring down the exchange rate, says CTU economist Bill Rosenberg reacting to the proposal from the Green Party this morning.  
 
“Alongside broadening Reserve Bank objectives to include the level of the exchange rate, we need to have a range of tools available to suit the circumstances, combined with policies aimed at the underlying trends that lead to overvaluation of the New Zealand dollar. We have seen too many exporters and firms competing with imports laying off staff and moving production elsewhere in recent weeks. Another – up to 40 jobs at risk in the Christchurch Engine Centre – was announced just on Friday citing the high dollar as a cause,” he says.
 
These tools could include macro-prudential policies that more actively control bank short term funding from overseas, or a financial transactions tax on incoming funds. Underlying policies that would support a lower dollar by discouraging property speculation include a capital gains tax or other assets tax excluding the primary home, and limits on loan to value ratios for mortgages. However loan limits need to be accompanied by much stronger housing policies to ensure first home seekers are able to find affordable good quality homes.
 
“The government should also be actively working internationally to build support for such policies, which would strengthen their effectiveness. Unfortunately US proposals in the Trans Pacific Partnership Agreement negotiations on financial rules could make exchange rate management much more difficult.”
 
“The Greens proposal for using ‘Quantitative Easing’ to fund the Christchurch rebuild, refinance EQC and help take pressure off the exchange rate is a very interesting one and deserves serious analysis and consideration. Clearly there are risks and benefits in all such policies, but the downside of current policies are all too apparent and Quantitative Easing should be among the options considered. At a time of low inflationary pressures because of stagnating household incomes and higher debt repayment, the risks are much less,” Rosenberg concluded.
 
ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The EU’s Beef With Google

There’s every indication that Google would be on a losing wicket if it chooses to fight the European Union competition watchdogs, who have just levied a $3.3 billion fine on the firm – with the prospect of worse to come if Google doesn’t quickly change the anti-competitive practices at the heart of a court battle that’s been seven years in the making.

Essentially, the case involved Google’s alleged abuse of the stranglehold it enjoys on the online advertising associated with its search activities. More>>

 
 

Legislation: Point England Housing Bill Passed

The passage of the Point England Development Enabling Bill through Parliament this evening will benefit Auckland with additional housing, help resolve Ngāti Paoa’s Treaty claim and improve the local environment and recreation facilities, Building and Construction Minister Dr Nick Smith says. More>>

ALSO:

Cyberducation: Digital Curriculum Launch And Funding Package

Consultation on new digital technologies content for the New Zealand Curriculum and Te Marautanga o Aotearoa, the Māori-medium Curriculum, was launched today by Education Minister Nikki Kaye. More>>

ALSO:

PM's Press Conference: Red Socks And Secret Tapes

Prime Minister Bill English began his post-cabinet press conference by explaining how well the National Party's annual conference went. He also mentioned today's announcement of changes to the EQC disaster insurance legislation and wished Emirates Team New Zealand well in the America's Cup. More>>

Max Rashbrooke: On How To Make Government More Open

International surveys, while often complimentary, have also pinpointed major weaknesses: political donations are badly regulated, for instance, and appointments to government boards frequently go to those with strong political connections. More>>

In Court: Hamilton Student's Lawsuit Over Climate Change Policy

A law student from Hamilton is preparing to challenge the Government in the High Court on Monday over what she says is a “failure” to properly address climate change. More>>

ALSO:

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement. As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog