The last ever Policy Targets Agreement was released this morning, signed by the incoming Governor and the Minister of Finance. With it came the decisions the government has made on reforms to the legislative framework governing monetary policy (decision makers, governance, transparency etc). We are now finally getting past the year in which first the outgoing Governor was a lame-duck, and then the period when there was no lawful “acting Governor” or lawful “Policy Targets Agreement” – and even if you did regard both as lawful, they were no better than caretakers. With the government’s planned reforms such an unfortunate hiatus should never happen again (as it doesn’t happen abroad).
The Policy Targets Agreement is the key document in short-term macroeconomic management in New Zealand: it is the mandate for the Governor in his role as single decisionmaker on monetary policy, and monetary policy is the active tool for…
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Utopia, you are standing in it! 
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