Tuesday , June 2 2020
Home / Tag Archives: Reserve Bank of New Zealand

Tag Archives: Reserve Bank of New Zealand

One policy instrument for each target, and every agency in its place

My column in today's Fairfax papers argues that central banks really don't have any business playing in climate change policy. It isn't that climate change isn't important; it's rather that central banks have one big job - two if they're also responsible for prudential regulation.  A snip: In October, the Reserve Bank's general manager for governance, strategy and corporate relations highlighted the bank's growing focus on climate change. As part of the same press release, governor...

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NZIER Economics Award – and an implicit critique?

Last night, Motu's John McDermott was named as this year's recipient of the NZIER Economics Award.  My former colleague Les Oxley read out the citation, which I copy below: Dr John McDermott has been the foremost macro-economist in New Zealand policy circles for at least the past decade. He was Chief Economist and Assistant Governor at the Reserve Bank of New Zealand from 2007 to 2019. Over this period, John has been a beacon in ensuring that economic rigour is brought to bear on policy...

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Quote of the day: Draghi edition

ECB governor Mario Draghi raised concerns over the appointment of the new Central Bank governor, Gabriel Makhlouf, directly with the Minister for Finance Paschal Donohoe, the Sunday Independent reports. The paper says the concerns centre on the fact Makhlouf has no experience working in a central bank and is not an economist. From the Irish Times. And is not an economist.Isn't it nice that there are central banks out there who think that expertise in monetary and macroeconomics is important...

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What’s bad for Australia is good for New Zealand?

It’s not usually a good thing when your biggest export market, biggest source of foreign direct investment, and the country that owns your entire banking oligopoly experiences a major economic slowdown. Yet New Zealand, at least in the past decade or so, watched its fortunes wane as Australia’s mining sector boomed, while the bust in Oz has gone hand-in-hand with stronger growth in Middle Earth. Consider the following chart, from a recent speech by John McDermott, the Reserve Bank of New...

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Could immigration controls be the solution to New Zealand’s frothy housing market?

Here’s an interesting thought from Grant Spencer, the Deputy Governor in charge of financial stability at the Reserve Bank of New Zealand: While boosting the capacity for development and housing supply is paramount, it is also important to explore policies that will keep the demand for housing more in line with supply capacity… We cannot ignore that the 160,000 net inflow of permanent and long-term migrants over the last 3 years has generated an unprecedented increase in the population and...

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