Transitory inflation retires but does not recede

His reappointment as conductor of the world’s monetary orchestra safely in the bag, US Federal Reserve chairman Jay Powell let us know that the current bout of “transitory” inflation was a little more than that.

“It is probably a good time to retire that word”, he told the world.

As euphemisms go, it may not acquire the notoriety of the Nixon White House’s description of a previous statement as “inoperative”.

Continue reading “Transitory inflation retires but does not recede”

RBNZ will be feeling the heat as critics assail its focus on climate change – and mention bank research to buttress their stance

That whistling   sound out  of  Wellington  has  come  from the Establishment  as  it  witnesses  a powerful attack   on  the  Reserve Bank. 

One volley has been fired by senior economist Matt Burgess in a research note for the  Wellington-based think-tank,  the  NZ  Initiative.  In Climate of fear: How the Reserve Bank is overstepping its mandate, he documents what he maintains are serious breaches of the RBNZ’s responsibilities as regulator of the financial system, including one instance of misconduct, as it becomes unduly preoccupied with climate change.

A second volley was fired by the NZ Initiative’s chief economist, Eric Crampton, in an article posted by NewsroomHe raises questions about the RBNZ’s independence from political interference. 

A third has been fired by an experienced business journalist, Jenny Ruth, in an article for Business Desk.  She has questioned the bank governor’s credibility. 

All three refer to the RBNZ’s recent Climate Changed report, which included a strongly worded threat to the institutions it regulates. Continue reading “RBNZ will be feeling the heat as critics assail its focus on climate change – and mention bank research to buttress their stance”