New Zealand needs to review its policy on intervening in the currency markets, says Dr Michael Power, global investment strategist.
Mr Power, speaking to government officials yesterday, also said, of the management of our economy by Bill English and John Key,
"This sort of hands up in the air, let the chips fall where they may, and let the currency fall where it will, is actually very, very, short-term, benign neglect."
The article reporting Mr Power's words of warning to National, observed this, of our Prime Minister's attitude,
"The Kiwi dollar hit a series of post float highs this year, peaking above US88c in August, and it remains well above its long-term average at about US80c.
The rise has strengthened calls for the Reserve Bank to intervene in an attempt to weaken the dollar. However, the bank declined to take action, with Prime Minister John Key saying he believed such a move would have little effect."
Monday, October 24, 2011
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6 comments:
What Power is talking about is reserve bank credit and managing the exchange rate..This is how we operated under a Keynesian economy before Rogernomics/Ruthernomics controlled our economy to get us on the global greed.
The former under Power was the reason we climbed out of the great depression. Its How we survived in supplying paying for etc our commitments in WW2. Under Keynesian the economy was managed there was not many very wealthy people in NZ just basically all middle class... Those days credit cards were seen as the work of the devil :) Yeah we were scared of how it would put us into debt....
Will it help now YES Would it help Greece YES ( but as they belong to the EU they have given up that right...this is why there is a thought out there that maybe it would be a good idea to dissolve the EU.
Why is Keys not interested ..he made his money from trading the economy to suggest a manged economy is a very very dirty word for him to hear ..money traders did no good under Keynesian :)
Nice work with that scalpel, Pauline!
Paulinem, we had a managed economy. The reason we don't have a managed economy now is it nearly sent NZ bankrupt. Or have you conveniently forgotten?
Paranormal
No Anonymous I haven't forgotten that the reason we nearly went broke was Muldoon and Birch think big and borrowed borrowed .over seas.... why what was the reason to BUY electorates votes re create jobs if the electorate under FPP was a close call ...Muldoon etc knew they only needed a few votes oaf floating voters to get back into power..... Under FPP they knew they could get back into complete power with only 40% of the vote
Of interest ..we were not broke that was caused by Bob Jones Micheal Fay Roger Douglas etc whom deliberate played mischief with the exchange rate knowing Muldoon was a sick man ...they made a killing when in 1984 Labour came into power and IMMEDIATELY floated the exchange rate ....next came back there money and AT THE RATEPAYERS they expenses made a financial killing !!! There was a video done all about it the Sir Fay Sir Jones etc got a high court junction stopping its circulation I WONDER WHY !!!
I should have said taxpayers expense
So, you've seen the best a managed economy can achieve - that is what the Muldoon government gave us, and yet you still pine for those days?
I also believe there was a video about how the moon landings were fake - so it must be true!
Sorry to burst your bubble, centrally managed economies are basket cases where ever they are. You rail against the free market, but are happy with what they deliver - service. What is missing from managed economies are checks and balances that mean resources are used for the best purpose - hence Think Big and those other disasters.
Paranormal
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