It’s great news that Phil Goff is urging a rethink of the way monetary policy is conducted in New Zealand.
For too long interest rates (and hence inflation, unemployment, and house prices) have been the blunt tools of monetary policy. And for too long workers, householders, and exporters have borne the brunt.
Labour leader Phil Goff is calling an end to the 20-year consensus on monetary policy.
Mr Goff is expected to use a hard-hitting speech to Federated Farmers in Wellington today to declare that the Reserve Bank’s policy targets which influence interest rates and the dollar are no longer working.
Phil Goff is absolutely right. It’s time monetary policy was recast to be in the interest of everyday Kiwis. Good on him for having the guts to finally tackle this issue.