NZ now has a regional monetary policy
Having now read the Financial Stability Report, and listened to the Governor’s press conference, I was surprised by the poor quality of the Report and of the policy that it discusses. The FSR is supposed to contain material to enable us to assess the effectiveness of their use of their powers (here and here). This one just does not.
Policy seems to be lurching from one intervention to the next, without any compelling analytical framework or evidence. There also appears to be little sign of any historical memory.
For example, only six months ago the Bank was reporting the results of its own stress tests, which suggested that the major New Zealand banks (and presumably the financial system) were resilient to even very severe shocks to asset prices and servicing capacity. And yet, despite announcing its intention to impose yet more, quite invasive, controls on bank lending to…
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May 13, 2015 @ 16:29:37
a good blog and Article.
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May 13, 2015 @ 17:06:27
Michael Reddell is a highly regarded former reserve bank economist. He worked there for many years. I don’t know him personally
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May 14, 2015 @ 10:44:03
when your blog is put in Mark Thoma’s links for the day you know you have made it!
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May 14, 2015 @ 10:55:05
Sorry, I don’t understand what you mean?
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