Tagged: monetary policy

RBNZ gives its frame for the debate on manufacturing and the exchange rate! - The Dismal Science

Matt Nolan Feb 21, 2013

Excellent.  The RBNZ has come out and discussed what is going on with manufacturing, what monetary policy can achieve, and the fundamental point that any “failure” stems from distortions in the domestic economy – not from flexible inflation targeting. Globalisation, outsourcing, and international supply chains, along with competition from low cost producers and rising global [...] … Read More

An interpretation of the OCR decision - The Dismal Science

Bill Kaye-Blake Feb 01, 2013

I’m finding this monetary discussion interesting and useful. Matt Nolan and Eric Crampton have added a lot to it. Since the Reserve Bank decided yesterday to leave the OCR unchanged at 2.5%, I thought I’d offer an interpretation. The Bank is balancing several different concerns. Some factors point toward looser policy: inflation below the target band, [...] … Read More

Experts agree — times are tough - The Dismal Science

Bill Kaye-Blake Jan 29, 2013

This wasn’t supposed to be a monetary policy week, really. It’s just worked out that way. Two bits crossed my desk this morning emphasising the tight conditions, possibly too tight. The NZIER Shadow Board opinion was released this morning. The Board is a group of economists that NZIER has organised to provide peer review of [...] … Read More

Independence and credibility: The crisis and central banks - The Dismal Science

Matt Nolan Oct 24, 2012

There is this view going around that the financial crisis has undermined central bank independence – or made it less important.  I have no idea where this has even come from, and it doesn’t seem to follow for me.  If anything, the crisis appears to have increased the importance of credibility and independence. What? Well [...] … Read More

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