Parliament

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

 

Federal Reserve action requires exchange rate action

David
PARKER
Spokesperson for Finance

15 September 2012 MEDIA STATEMENT

Federal Reserve action requires exchange rate action

The Federal Reserve’s decision to continue quantitative easing will push our dollar even higher and demands action from New Zealand, says Labour’s Finance spokesperson David Parker.

“Quantitative easing is the new reality and there’s no telling how long it will last. We face competitive devaluation and ignore it at our peril.

“As a consequence exporting businesses and import substituters are shedding jobs and shutting down. Our economy is struggling under the weight of an inflated dollar.

“It is the responsibility of the Government to take action and help exporters and a key is broadening the objectives of the Reserve Bank.

“Around the world more and more economists are criticising the primacy given to inflation targeting over other aspects of the economy such as the exchange rate.

“Just last month Alan Bollard said: ‘In a globalised world, big players lowering their domestic interest rates, whether by QE or any other tool, will (all else equal) tend to promote capital flows to other countries and appreciation of their exchange rates. As a small open economy, New Zealand has often seen the effects of carry trades on the exchange rate. This can be distortionary and problematic, because an economy relies on its exchange rate as a signalling price.’

“National are backward-looking on this issue and refuse to consider solutions. On The Nation today Steven Joyce called any attempts to focus on the exchange rate a snake-oil solution, just as he previously dubbed critics voodoo economists. He simply substitutes insults for analysis.

“Increasing numbers of reputable economists have the contrary view, and even the outgoing Reserve Bank Governor has been forced to concede ‘it is a moot point’.

“The announcement that quantitative easing is continuing means that as a consequence our currency is inflated and our exporters and those losing their jobs are bearing the brunt.

“The objectives of the Reserve Bank need to be broadened.”

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Leaders Debate

Do political debates change voter intentions, and cause voters to switch sides? According to a 2019 Harvard Business School study conducted across 61 elections in nine countries involving 172,000 respondents, the answer would seem to be a resounding “No.” Political debates have little effect on voter behaviour, let alone on election outcomes. Crucially, the limited effect they do have does not involve a change in voters’ policy preferences... More>>

 

National Agriculture Policy: Will Restore Farmer Confidence And Pride

A National Government will reduce regulatory burden and give farmers confidence for the future. Leader of the National Party Judith Collins and Agriculture spokesperson David Bennett announced National’s Agriculture policy in Gisborne today. “Agriculture ... More>>

ALSO:

Shaw: Wealth Tax Not A Bottom Line For Green Party But They Will Push For It

Green Party co-leader James Shaw says one of his senior MPs misspoke under pressure when she said a wealth tax was one of the party's bottom lines. More>>

ALSO:

Government: More Border Exceptions For Critical Roles

The Government has established class exceptions for border entry for a limited number of veterinarians, deep sea fishing crew, as well as agricultural and horticultural machinery operators. “Tight border restrictions remain the backbone of the Government’s ... More>>

ALSO:

PM: Auckland At Bolstered Level 2, Rest Of Country Provisionally At Level 1

Pandemic alert levels for the whole country have been reviewed by Cabinet and Prime Minister Jacinda Ardern is announcing whether restrictions will be eased. More>>

ALSO:

Dunne Speaks: The Election Campaign Just Grinds Slowly On And On

With just over three weeks until the General Election, the release of the first major pre-election opinion poll this week confirmed what was already being reported about this year’s campaign. Although the gap between Labour and National has narrowed ... More>>

Electoral Commission: Candidate And Party Lists Released

17 registered political parties and 677 candidates will be contesting the 2020 General Election Nominations have now closed and the Electoral Commission has released the electorate and party list candidates for 2020 online at vote.nz . Advance voting ... More>>

National: Plan To Restore NZ’s Prosperity

National’s Economic and Fiscal Plan carefully balances the need to invest in infrastructure and core public services while also reducing tax pressure on Kiwi families and businesses. National Leader Judith Collins and Finance spokesperson Paul Goldsmith unveiled National’s ... More>>

ALSO:

NZ First: Party List

New Zealand First has a proven twenty-seven-year history of bringing balance and common sense to our government. Amid the continued setbacks of COVID-19 restrictions, New Zealand First has once again sustained its profile by selecting a strong team ... More>>

Election: Arriving Travellers In Isolation To Be Able To Vote By Telephone

Up to 5,000 people in managed isolation or quarantine will be able to vote by telephone in the general election and referendums after an amendment to electoral regulations last week. Chief Electoral Officer Alicia Wright says the Electoral Commission sought ... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels