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Monetary policy

The Unreserved Bank

The RBNZ needs urgent clarification that the Monetary Policy Committee will only pursue monetary goals, even under conditions of quantitative easing. [...]

The Unreserved Bank of New Zealand

As the Reserve Bank takes on fiscal functions, its political neutrality and commitment to monetary stability, as well as maximum sustainable employment, need to be re-emphasised. [...]

The weird world of negative interest rates

Unless you have a mortgage or you are the Minister of Finance, it is a world you would not want to inhabit. But for millions of Europeans, that may soon be reality. We can only hope that even after the RBNZ’s next cut, New Zealanders will not contemplate going into the topsy-turvy world the Germans are about to enter. [...]

Trans-Tasman monitoring

Given the past and current closeness of Treasury and the Reserve Bank, should not a monitoring agent be more removed from the object it is supervising? [...]

Changing the monetary guards

Adrian Orr has his work cut out. He will migrate the Reserve Bank towards a changed operating model while having to maintain its credibility for keeping prices relatively stable. [...]

The Reserve Bank in Wonderland

With its new Policy Targets Agreement, the Reserve Bank has arrived in Wonderland. It looks as if it has a new employment target. But it is (thankfully) subject to interpretation. [...]

Monetary window-dressing

The best way for a central bank to achieve both low inflation and low unemployment is to make it pursue price stability alone. [...]

Monetary policy needs public scrutiny

Central banks have a crucial role to fulfil in our economies. This role thus deserves public scrutiny and debate. Given the RBNZ’s independence, external commentary on its actions is the most effective check on its operations. [...]