ADVANCE New Zealand
A non political design for our economic future

MEDIA RELEASE
Date: 9/08/2005 9:31:36 AM

Advance New Zealand questions Reserve Bank interest rate move.

The latest rise in the OCR will drive more NZers to the edge of the economic cliff and it should be no surprise if the tragic circumstances around the recent power disconnection in Auckland are repeated.

The economic/monetary policies of the past 30 years have turned our country into a low-wage, skill deficient economic backwater with the highest interest rates in the industrialised world and the greatest level of intervention and disruption of ordinary lives in our history.
Far from solving the problem of inflation Alan Bollards’ move on interest rates will actually add to it because while demand is driven from the economy, the cost of virtually all aspects of economic activity will be forced ever upward.

The money mechanism used by those who create and control the key element needed to lubricate the wheels of commerce is no longer capable of delivering the goods (or services) required to build and sustain a viable economy for all NZers. Playing silly buggers with one piece of the orthodox economic mythology is not going to provide a long-term solution to the ongoing problem of inflation.

A new approach to the problem of inflation and the nature and use of ‘money’ is urgently needed. The Reserve Bank is central to the environment created by money mechanism and Einstein was right when he said the solution to a problem will never be found in the environment that created it.

ENDS

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