New Zealand enjoyed the fame of having the first inflation-targeting central bank so much three decades ago that the new prime minister wants to relive the glory. This is a retrograde step that says a lot about populist policies honed in opposition and little about the practicalities of managing a modern economy.

Christopher Luxon, who was sworn in last week at the head of a center-right bloc, made shaking up the Reserve Bank of New Zealand a core theme of his campaign. He wants to strip the monetary authority of its mandate to pursue full employment, and concentrate on price stability. That may be just the start: Under recently released terms of a coalition pact with two smaller parties, the premier will contemplate requiring the bank to achieve its objectives within a defined period, and even jettison the monetary policy committee, leaving decisions on interest rates as the domain of one person, the governor. He or she would play God.

QOSHE - Greenspan Could Never Make It in New Zealand - Daniel Moss
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Greenspan Could Never Make It in New Zealand

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04.12.2023

New Zealand enjoyed the fame of having the first inflation-targeting central bank so much three decades ago that the new prime minister wants to relive the glory. This is a retrograde step that says a lot about populist policies honed in........

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