If experience is anything to go by, the new RBNZ era will end in tears and inflation and it will take another Minister of Finance, and another RBNZ Governor, to clean up the mess. [...]
To keep international investors’ trust, we must remain squeaky clean in our fundamental economic institutions. If we are not, New Zealand will come out of the Covid-19 crisis as a broken economy and a failed state. [...]
The RBNZ needs urgent clarification that the Monetary Policy Committee will only pursue monetary goals, even under conditions of quantitative easing. [...]
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. [...]
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. [...]