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

Extended Cease Fire: Gaza Celebrates!!!!

Images and video from Gaza.Scoop - Julie Webb Pullman in Gaza.

Gazans took to the streets tonight to celebrate their victory in achieving the end of hostilities and the lifting of the illegal seven-year siege. Whatever tomorrow may bring, tonight was a time to rejoice! More>>

Details:

 

Parliament Today:

Collins 'Misinterprets Media Reports': "Too Compromised To Remain Justice Minister"

Bizarre claims by Judith Collins this morning that she had been cleared of inappropriate behaviour by the Privacy Commissioner demonstrates she is too compromised to remain Justice Minister, Labour MP Grant Robertson says. More>>

ALSO:

Labour On Climate Change: Focus On The Now For The Future

A Labour Government will put in place a comprehensive climate change strategy focusing on both mitigation and adaptation, establish an independent Climate Commission and implement carbon budgeting, says Labour Climate Change spokesperson Moana Mackey. More>>

ALSO:

Gordon Campbell: On National’s Housing Assistance Plan

So, as many as 90,000 people could derive some benefit from National’s housing assistance plans for low and middle-income earners... Yet in reality, the benefits seem likely to be insignificant, and they will be skewed towards those at the top end of the income group that’s supposedly the target. More>>

ALSO:

Election Data Consortium: National’s Worst Case Scenario At Stage One?

A month out from the general election and ipredict traders are still forecasting National’s vote to slip below current polling levels and there is potential for it to fall further. More>>

ALSO:

From The Scoop Video Archive: PM Says SIS "Told Me" About OIA Release

In a press conference immediately following an controversial OIA release of notes on an SIS briefing to then Labour leader Phil Goff, Key said "at that point [Tucker] told me he'd release it ...". Since the release of Nicky Hager's 'Dirty Politics' Key has denied being personally informed and said references by officials to 'the PM' being told briefed referred to his office. He now says the same about his own statement. More>>

ALSO:

  • Scoop Video in the news - New questions over Key claims | NZ Herald News - Stuff.co.nz
  • Earlier - Felix Marwick: Laying out facts over SIS documents - Newstalk ZB
  • Labour - Director’s letter contradicts Key’s claims
  • ACT - The Letter - 26 days to go
  • TV3 Video - Housing issue nudges Dirty Politics aside - David Cunliffe: Key's SIS explanation 'defies belief' - SIS leak came from Key's Office - Goff - Key 'categorically denies' Slater OIA discussion - Video: Key faces more Dirty Politics questions

  • TVNZ - Winston Peters: ‘Dirty Politics' is a new low
  • The Nation - Debate Between Grant Robertson And Russel Norman
  • NZ First - “The Words Mean What I Say They Mean”
  • Schools, PPTA Sign Up: Primary Teachers And Principals Vote Down Govt Plan

    Teachers and principals have voted overwhelmingly against the Government’s controversial “Investing in Educational Success” policy, including proposed highly-paid principal and teacher roles. More>>

    ALSO:

    Gordon Campbell: On The Usual Round Of Mud Slinging And Name-Calling

    This week gave an interesting example of how hard it is to untangle the reality from the slanging matches. The issue that emerged early this week could hardly be more important. Does the government intend to cut spending in health, education and on the environment if re-elected, or not? More>>

    Earlier:

    Electionresults.co.nz: National and NZ First Rise in Roy Morgan Poll

    National has bounced back in the latest Roy Morgan Poll but the big winner has been New Zealand First who rise to their highest level of support since September 2013. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
    Politics
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news