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

 


RBNZ and Government need to focus on the real problems


31 January 2013

RBNZ and Government need to focus on the real problems

The Reserve Bank acknowledges that inflation is not a problem, but continues to make that its only focus. Yet at the same time it acknowledges that the exchange rate is overvalued and is hitting export and import competing firms, and there is a risk of house prices rising too rapidly - another house price bubble.

Bill Rosenberg, CTU Economist says "it also notes the "weak labour market" - high unemployment - and that government policies are "dampening growth". In other words, the government cut-backs are holding back the economy."

"This calls for some innovative policy which targets house prices and the exchange rate rather than price increases in general. Raising interest rates would push the exchange rate higher and stifle investment and job creation."

"Instead the Reserve Bank should be using macro-prudential policies that directly target house prices, and at the same time the government should be increasing the supply of low cost housing designed for first home buyers so they don't get disproportionately hit by these policies. It would also help to keep down house prices."

"The Reserve Bank should also be considering policies to manage the exchange rate. This must include the ability to control the financial flows in and out of the country, which can drive the exchange rate in the wrong direction for exporters and firms competing with importers."

"The Reserve Bank cannot do these things alone. It needs the Government to change Reserve Bank rules, and Government action to stimulate rather than hold back the economy, including active involvement in the housing market."

"Otherwise we will continue to have high unemployment and a growing current account deficit, increasing New Zealand's large private international debt," said Bill Rosenberg.

ENDS



© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Gordon Campbell: On What John Key Should Be Asking Joe Biden

No doubt, US Vice-President Joe Biden will be updating Prime Minister John Key on the chances of a TPP vote taking place in the ‘ lame duck’ session of Congress that’s held between the November’s election and the inauguration of a new President in January. More>>

ALSO:

Make NZ Make Again: Greens Will Establish A Minister For Manufacturing

The Green Party announced today that it will establish a Minister for Manufacturing in Cabinet, to better represent the interests of manufacturers and ensure they thrive. The Minister will be inside Cabinet and have responsibility for the long-term interests of the manufacturing sector. More>>

ALSO:

Cannabis Party: Treasury Figures On Cost Of Criminalisation

Figures released by Treasury prove the economic viability of The Cannabis Party's policy, while destroying the credibility of police claims about cannabis harms. More>>

ALSO:

Green Party: Investigation Into Mental Health Facilities Shows Disarray

The Health Minister must urgently launch an inquiry into mental health services, after serious issues with the standard of care at mental health and disability facilities around the country were revealed today, the Green Party said. More>>

ALSO:

Apparently He Means 'Years 0-8': Seymour Announces 4th Partnership Schools Application Round

“The continuing growth of this policy reflects the achievement of the eight existing Partnership Schools, and the strong levels of interest educators and community leaders are showing in the Partnership Schools model and what it offers students and their families,” Mr Seymour says. More>>

ALSO:

Trust Directors: Urban Māori Win Case Against Te Ohu Kai Moana

The National Urban Māori Authority (NUMA) and Te Waipareira Trust have succeeded in their claim over a $20 million trust set up for the benefit of urban Māori, meaning all directors of the trust must represent Māori who are not affiliated with an iwi. More>>

New Model: Carbon Tax Could Lower Emissions And Boost Economy

A carbon tax targeting emissions-intensive industries, along with a revamped Emissions Trading Scheme (ETS), could boost economic growth, with the extra tax generated used to cut GST from 15 percent to 12.5 percent. More>>

ALSO:

Budget Docs Release: ACC Sought $158mn In Budget 2016, Got $26.4mn

The Accident Compensation Commission requested an extra $158 million in funding for 2016/17 from the government ahead of Budget 2016, but Treasury instead recommended an interim payment of just $26.4 million be funded to tackle demographic changes, papers published by the government show. More>>

ALSO:

Submissions Sought: Māori Party Joins Opposition Housing Inquiry

People who are homeless, those who were once homeless, those working with the homeless and concerned New Zealanders are being asked to share their experiences and solutions to this growing issue with the Cross-Party Homelessness Inquiry. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news