My previous post concentrated mostly on the new Policy Targets Agreement, which will govern monetary policy, under the current Act, for the next year or so.
In this post, I want to concentrate on the announcements made by the Minister of Finance about the first stage of his planned legislative reforms. There is a summary graphic, and a set of questions and answers.
The proposed reforms represent a step forward. We’ve been in the peculiar position for almost 30 years in which one individual, not even appointed directly by the Minister of Finance, made all the monetary policy decisions. It made it easy to know who to fire – that was the argument made for the model in the late 1980s – but it was a model that was out of step with how almost every other public agency was run and (as became increasingly apparent) with…
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