Category Archives: New Zealand

PM on New Zealand Reserve Bank Policy Shift–transcript

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Will Bud­get tax cuts fuel inflation?  (click here for the MP3 file)
PM — Wednes­day, 9 May , 2007  18:14:52
Reporter: Stephen Long
MARK COLVIN: Now, will the tax cuts in the Bud­get cause infla­tion?

Some lead­ing econ­o­mists argue that the Reserve Bank could be forced to lift inter­est rates down the track because Gov­ern­ment spend­ing and tax cuts will increase con­sump­tion and prices.

But oth­ers dis­agree. They argue that debt lev­els are so high that many peo­ple will be hand­ing their tax cuts straight to the bank.


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ABC PM tonight–major policy shift by New Zealand RB?

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Stephen Long from ABC News brought to my atten­tion the fact that the Reserve Bank of New Zealand appears to be con­tem­plat­ing a return to reg­u­lat­ing lend­ing.

This is only hint­ed at at present, but it rep­re­sents a major shift in Cen­tral Bank thinking–and a wel­come one, from a debt-defla­tion­ary point of view.

I’m inter­viewed about it on PM tonight; in the mean­time, here are some rel­e­vant excerpts from the Reserve Bank of New Zealand: Finan­cial Sta­bil­i­ty Report, May 2:


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