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 Newsroom. He 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”
So how is the political landscape looking as the country inches slowly towards the goal of being 90% vaccinated against Covid-19?
The government which just 12 months ago was blissfully floating beyond electoral threat somewhere in the political stratosphere has come back to earth with something of a thud.
But National, still apparently without the capacity to strike the wavelength to reach the public as it did in its heyday, has yet to find its old mojo. By comparison, ACT has been flexing a new kind of muscularity, without suggesting it has yet the ability to land a killer punch
Meanwhile a group of top economists is warning that the seeds of the next economic crisis have been sown. The steps taken by countries, including New Zealand, to counter the economic impact of Covid-19 have masked and in some cases exacerbated the risks.
“The Covid-19 financial support package has kept Kiwis off of the dole queue and saved many businesses from bankruptcy,” report co-author Bryce Wilkinson said.
“However, the government should promptly repay those debts in order to be prepared for the next financial shock. Failing to prepare now for the next financial crisis could destroy New Zealanders’ nest eggs and threaten their livelihoods.” Continue reading “Polls bring Labour back to earth while a warning is sounded about the need to brace for next economic crisis”