web analytics

Monetary policy needs to change

Written By: - Date published: 9:29 am, November 20th, 2009 - 64 comments
Categories: monetary policy - Tags:

I’m really happy that Phil Goff has taken monetary policy up as an issue. The current system – a puritanical neoliberal model set in place twenty years ago – has never worked particularly well and has now become a major threat to this country’s ability to export competitively. Monetary policy is a big issue, as important as any fiscal policy like spending or taxes, but one that’s largely been ignored in recent years, so I guess I’ll split the topic into several posts.

Before the detail, the politics. Hasn’t it been interesting to see the kneejerk reaction from the Right? They won’t even countenance a debate despite the clear problems being caused by our widely fluctuating dollar and the negative side-effects of inflation-targeting (using interest rate to keep inflation within a certain band). Ironically, the Right’s behaviour matches the original definition of politically correct – the received wisdom can’t even be questioned. Key’s come out against any change but, then, he’s a money-trader.

OK, first, the carry trade:

David Farrar writes “declaring monetary policy is no longer working is silly, because of course it is. You can’t blame the high NZ dollar on monetary policy considering we have the official cash rate at a very low 2.5%.”

That’s just ignorant. The Reserve Bank Act is a major cause of our high currency because the Reserve Bank’s myopic focus on inflation causes the carry trade.

The carry trade, where people borrow in one country (say Japan) to invest in another (say New Zealand), which results in currency transactions pushing up the exchange rate of the destination country, works because of interest rate differentials, not absolute interest rates. Sure, our OCR is 2.5% but Japan’s is 0% and it’s that differential that investors are exploiting in the carry trade. We can’t lower our official interest rate to 0% because that would fuel inflation but the result is the carry trade, which pushes up our currency, hurting exporters.

Ironically, the carry trade itself is inflationary because it creates a flood of credit into New Zealand, which lets banks lower their mortgage rates more than they otherwise could and, crucially, offer home loans to people with very small deposits. People use all this cheap and easy credit to buy houses, prices go up, more people use the cheap and easy credit to get on the speculation wagon. Rising houses prices = inflation. Inflation means the Reserve Bank has to keep the Official Cash rate relatively high or even increase it, which brings more hot money on the carry trade, which lifts the exchange rate and provides fuel for the housing bubble. While exporters are being hammered, housing becomes a great investment, which distorts investment towards housing rather than productive capacity.

What we’ve got here is a feedback loop that looks almost custom designed to screw over our economy by making the exchange rate too high for exporters to be profitable and by creating housing bubbles, which in turn draw capital away from investment in productive things into housing. The system is broken.

The first solution is to do what Australia and nearly every other country does. Rather than the Reserve Bank being fixated on keeping inflation within a tiny, low range, it should be tasked with balancing a set of economic factors – inflation, the exchange rate, and unemployment – within healthy ranges.

The second is to give the Reserve bank more tools than just the OCR, more on that next post.

64 comments on “Monetary policy needs to change”

  1. RedLogix 1

    Yet another great post Marty.

    a puritanical neoliberal model set in place twenty years ago

    Neoliberal economics = Mad, bad and dangerous.

    All this model has achieved for NZ is the fastest rising income inequality (GINI score ) in the OECD, an unsustainable Debt to GDP ratio and huge profits for our finance sector. The four Aussie banks make more profit than the total NZSX50 companies combined.

    Goff is pointed in the correct direction; question is, will he go there?

  2. Craig Glen Eden 2

    I have to agree about the reaction from the right Marty and knee jerk is exactly the right description. So we have this problem ( boom bust cycle and fluctuating dollar) but the rights reaction is lets not see if we can do anything about it.

    Until we do, how can we expect people to invest in businesses that exports goods, how is the pie/ economy going to be made bigger (to quote the over used metaphor) if nothing is done/ changed we will get the same results that we have already got. Something has to change!

    Why would the spokes people on the right not want to see exporters flourish, is it because the likes of Mr Key would/ might loose his little gambling table.

  3. Good post Marty.

    The right are regrettably predictable again.

    They criticise Phil for having no solutions but if he came out with one they would criticise him for making his mind up too soon!

    Pick an option and watch them say it is wrong and he should have done the other thing.

    This is a really important debate and dare I say it but Phil looks Prime Ministerial in the way that he has started it off.

    This is one policy area where a bit of mea culpa is appropriate.

    NZ Inc is essentially owned by overseas interests. That big sucking noise that you hear every month is the sound of our wealth flooding overseas to foreign interests. The exchange rate is an important part of this.

    The interesting thing will be how do we reintroduce some sort of control without there being a run on the dollar?

    • prism 3.1

      Phil Goff did sound when talking about the decision to change monetary policy like a man who could be PM and give a boost to NZ that would benefit all.

      • Herodotus 3.1.1

        Someone spousing off newspaper neadlines BUT you will have to wait 2 years for any detail. There is more devil in this detail than floating down the styx in hades, just like the Power revelation, We (Lab) have been overcharging But wait we are going to fix this. Free preschool headlines yet the detail was subsidies Preschool. Still good do not get me wrong but underdeliverd in a big way.
        Phil has brought this topic up but to wait 2 years for any thing tangable?
        What happens if Phil & co support goes up, what tis the result of overseas money with uncertainity?
        Marty interesting yet no comment on what could happen when the world gets sick of proping up our debt. Using the reverse NZ$ crashes, interest rates increase as there is limit $ to loan out. This outflow of funds has not really happened YET?

  4. Geek 4

    A good start would be to remove some of the restrictions on housing density in our Major cities. By restricting density you cause a shortage in housing in key area’s. This results in that housing then increasing in price. This has also been proven to be one of the driving factors of the housing bubble.

    There are many other added benefits. Reduced sprawl mean less clearing of land for housing. Increased density improves the potential profitability of public transport increasing the viability of current providers investing in public transport networks thereby providing a more reliable and attractive alternative to personal car use. Building larger accommodation on smaller area’s allows for a better return on the value of the land whilst still keeping the price of the actual dwelling low so that it is more affordable to those wishing to enter the market.

    • Geek 4.1

      This is a link to the reserve banks own report on the effects of density on monetary policy.

      http://www.rbnz.govt.nz/monpol/about/2989594.html

    • ghostwhowalksnz 4.2

      Uhh ? That will drive up land ( and house ) prices.
      In Auckland ( City) the minimum land area has gone from 1100m2 25 years ago to 360m2 to day. All those people have two cars, drive the kids to school, the mall, to work. ergo nothing has changed

      • Geek 4.2.1

        Check the link.

        I know you don’t like market economics but there is one simple principle to it that I know you get. Supply and demand determine value.

        In major cities demand for housing in more central area’s increases with increasing population. By limiting the supply you force the price up because demand exceeds supply. As clearly stated in the RBNZ submission in Auckland for example factors such as urban density restrictions and fractitious land ownership in certain areas result in an inability to increase supply to meet this demand. This forces house prices up.

        It is only one of 3 factors affecting supply but I choose it because it also ties into other key area’s in which our major cities struggle. i.e public transport and urban sprawl.

        • Bill 4.2.1.1

          “Supply and demand determine value.”

          Really? So oil is cheaper than water….why?

          • Geek 4.2.1.1.1

            Are you really that dumb?

            Could it be that oil has a far lower supply and a limited supply at that?

            You really don’t understand a basic supply and demand curve do you?

            http://en.wikipedia.org/wiki/Supply_and_demand

            I know its a wiki link but I think it will give you the gist of how a market’s most basic principle works.

            • Bill 4.2.1.1.1.1

              Erm. S’cuse if I really am being dumb, but aren’t you simply reiterating my very point? The theory says something like….

              Low supply + high demand = high price (oil)
              High supply + high demand = med(?) price (water)

              But the reality is that oil is cheaper than water. So a simple and basic principle of market economics is a crock of shit. No?

            • felix 4.2.1.1.1.2

              Salt water is definitely cheaper than oil.

            • Geek 4.2.1.1.1.3

              Bill has either:

              a) Never bought bottled water, or
              b) Seen an add about countries that have no fresh water.

              This is good because if there are more people like him we can go out and start bottling any dirty old water up and start selling it to him as aparently he thinks its all the same thing.

            • Bill 4.2.1.1.1.4

              As you point out, NZ has an abundance of fresh water….no problem securing supply. And yet….

              Cost of water in NZ is $3+ per litre from retail outlets.

              Cost of petrol in NZ is $1.60 odd per litre from retail outlets.

              This simply doesn’t fit with your assertion about the relationship between supply and demand determining price does it?

              Or am I still being really dumb? If so, please indulge me to the extent of offering a simple explanation pointing to the error of my ways in the above example. Much appreciated.

            • Geek 4.2.1.1.1.5

              Because your initial analysis of supply and demand are incorrect.

              It is a graph. The demand for bottled fresh water versus the demand for that product are major contributing factors to its cost. If demand drops the producers lower price in an attempt to increase demand so that stock is not wasted. If demand goes up then producers increase their prices to match or increase their production. If demand lowers to the point where cost can’t cover production then production ceases.

              As for petrol. OPEC supply the majority of the worlds crude oil. In this case demand is relatively constant(in that it grows at a somewhat constant rate). It’s cost is effected by dollar value shifts to a larger extent than most products due to it high turnover, however OPEC constantly shift the price of oil by either increasing or decreasing supply. This is an excellent example of changes in supply relative to demand have a direct impact on price.

              Comparing the two is irrelevant. The demand for petrol has no effect on the demand for water and vice versa the demand for water has no effect on petrol. The supplier puts a product on the market at a price he chooses. If the demand at that price level exceeds his ability to supply then he has two choices. He can raise the price and reduce demand so that he can now meet it, or he can increase supply. Likewise if the price he chooses to initially set is too high and demand is low he is then forced to lower the price to try and increase demand.

              The same can be used in housing. When demand for houses is high (as it was during the bubble due to easily available creadit and limited supply) there are a number of ways to reduce it. You can go with current monetary policy which is to increase interest rates thereby reducing the availability of credit and hence reducing demand. This leads to cap and hand trading which is what Labour is trying to reduce. What you could also do is increase the supply of housing. This is what I am referring to by allowing for increased density.

            • Clarke 4.2.1.1.1.6

              Geek – I think you missed Bill’s central point.

              The reason that bottled water – which let’s face it, falls from the sky for free – is more expensive than petrol is that markets are not rational. Basic Econ 101 theory (complete with Wikipedia-level supply and demand curves) assumes everyone is a rational actor who will always act to maximise their personal welfare. This is such transparent bullshit that it’s a wonder it is still taught by reputable universtities.

              People tend to make decisions for emotional reasons and then rationalise them logically afterwards, and this has a much greater effect on markets than any amount of post-hoc rationalisation about supply vs demand curves.

          • Bill 4.2.1.1.2

            But isn’t that just a long and convoluted way of saying that the producer will gouge what they can from the consumer today (water)…. or the producer might opt for artificially low prices to generate ever higher turn over….to generate dependency ( by a number of avenues) to secure profits in the long term (oil).

            Either way, artificially generated demands interplaying with arbitrary controls of supply, all in the interests of profit, would appear to be a recipe for deliberate mis-pricing of certain commodities…. which comes back to the whole demand supply argument being a con…ie not some impartial relationship being a constituent part of a deterministic price setting mechanism.

        • Quoth the Raven 4.2.1.2

          People are confusing price and value.

          captcha: values

          • Geek 4.2.1.2.1

            To be fair in this situation price is a measure of value. I understand it isn’t always the case.

        • Nick 4.2.1.3

          Perfect supply and demand curves only occur in theoretical worlds, here on planet Earth we have those very obdurate objects (people) who as interested parties do their damnedest to bugger up the curve in their favour. Read todays thearchdruidreport.blogspot.com on how medieval guilds managed supply and demand.

          • Geek 4.2.1.3.1

            At no point did I claim that a perfect supply and demand curve exists. However it is a large step to claim that it is no longer relevant.

            I don’t know if you even read the submission, linked above, by the RBNZ but a major contributing factor to inflation in NZ is house prices and they list a large contributing factor to house prices as being an inability of supply to meet demand.

            • Herodotus 4.2.1.3.1.1

              We experienced the lowest no of dwelling consents for 40-50 years, a depression and house prices fell 10-15%.
              Zoned Land is in short supply, yet it takes 10 years to turn unzoned to zoned land. 6 years ago council contributions were about15k now they approach 45k. Manukau Water crept up from $10k /ha to $6k/dwelling. There were 12 dwg/ h.a. now there are 18. (A big windfall to Man Water) The cost of materials has skyrocketed, double glazing adds $6+k/house, consents have increased from a few k to $10+k. The time to get plan sign off and build has crept out from a 4 month process to 10-12mth.
              The cost to buy existing for a std 220m2 home to build is about $100k differeential and the existing would have a larger section size.

            • Geek 4.2.1.3.1.2

              Consents did drop and so did house prices. However that was due to current monetary policy. no one is claiming that you can’t control house prices and hence inflation via interest rate changes. You give an excellent example of it at work. However there are unpleasant side effects to using interest rates. When you up them you now encourage investors to borrow money overseas at a low rate and invest it (lend it) here at a high interest rate. This is mostly done by overseas interests and that interest we pay goes off shore. This is Cap in hand trading.

              What I am saying is that by removing those blocks that you indicate in you post and leaving interest rates low you can control house prices and inflation via supply rather than demand. Rather than removing peoples ability to borrow money and hence remove them from the market you provide more houses that they can get cheaper. This keeps the price down whilst keeping interest rates down so that you don’t have the same cap in hand issues.

    • Draco T Bastard 4.3

      I’d actually love to see all the single level dwellings in our cities knocked down and replaced by high rise (at least 12 levels) apartment buildings. Then have all the cleared land turned into park land and native bush.

      IMO, living in an apartment is much better than living in a single level house on it’s own section.

      • Geek 4.3.1

        I don’t know if you are trying to be sarcastic here as type really isn’t the best medium for it, but I will assume you are.

        Yes people would rather live in single dwellings over apartments normally. No one is claiming they should be removed. However by allowing for more cheap housing you introduce a lot of benefits to not only the economy but the environment. If you want a house on its own lot then you can coff up the money to own one or look in an area where they fall inside the price you are willing to pay. However those who want cheaper central housing will have it available to them.

        Better than being forced to either rent at exorbitant prices or live a long way from work and commute in thereby increasing their carbon footprint. That’s just my opinion, oh and that of the economic experts at the reserve bank.

        • Draco T Bastard 4.3.1.1

          No, I wasn’t being sarcastic. I really would like to see single level dwellings in cities on their own little piece of land replaced by high rise apartments. It doesn’t mean that I expect it all to be done immediately nor do I expect it to be forced.

          Yes people would rather live in single dwellings over apartments normally.

          That, IMO, is due to conditioning. I got the same conditioning growing up but the reality is that apartment buildings have all the benefits over single dwellings. Better services, more convenience and less hassle.

          • RedLogix 4.3.1.1.1

            Totally agree Draco. I’ve lived in several European cities in the kind of apartment you describe… as a single person I found them perfectly acceptable. I’m less sure how it would have been with kids, but then again there were plenty of open public spaces about, and the countryside was usually very accessible on excellent public transport.

            Never felt the need to own a car either.

          • Geek 4.3.1.1.2

            Sorry for miss reading you then. I am so use to be at the opposite end to you that I guess I was looking for the sarcasm.

          • lprent 4.3.1.1.3

            ..but the reality is that apartment buildings have all the benefits over single dwellings

            I’d agree. However they really need to fix up the ambiguities that are in the Strata Titles Act (or whatever it is called).

            I really can’t abide stand alone houses anymore as I found out while house sitting one for 7 months this year. Cold, awkward spaces….

      • Bored 4.3.2

        A bit extreme but you are on the right track, the urban sprawl is a dead loss, and we have let our cities become too extensive. It kills off what should be productive land and creates any number of issues, not least being how we will live in the suburban sprawl in a fuel starved world.

  5. Olwyn 5

    Lovely analysis Marty. You describe a state of affairs which I see as roughly analogous to Cheyne-Stokes breathing – something that sets in within approx. 48 hours of death, where the blood flow abandons the majority of the body and runs between the heart, lungs and brain. Many on the right, of course, count themselves as analogous to these important organs, forgetting their dependence on the rest for long-term survival. What is more I just love the fact that Labour has grasped this important nettle, which plays a such large part in the gap between us and Australia. The Don Brash closing-the-gap exercise should be shown up for what it is – another example of the say-something-scary-do-something-a-bit-less-scary game that this government has lived on for far too long.

    • The Baron 5.1

      Oh for god’s sake. I realise you all think that the left are god’s chosen savants, and that right thinking is akin to child molestation…

      But this comment fellatio when all Marty has done is say “well thats crap” is really a bit much. This isn’t a left and right argument; more a “what are our objectives, and whats the best way to achieve them” debate.

      Say what you will about the bad sides of neo-liberal monetarism (yes, there are plenty), but it has achieved its aim of keeping inflation low, and therefore protecting the value of assets for everyone in an economy. I am yet to hear anyone on this site (or in the labour party) articulate anything that is even remotely:

      – well researched
      – effective
      – achievable
      – or credible

      as an alternative, though I am sure Marty will wow us in his next post.

      Regardless, you also have to accept that with any monetary policy, there are trade offs. We have traded a low inflation environment for exchange rate volatility and interest rate manipulation. Other priorities will have other trade offs. Have you thought all of those through before you start declaring “whats best for workers”?

      To the larger point though – please, enough of this goddamn us versus them mentality. Monetary policy is one of the areas where there is no room for partisan politicking, unless you want to drive us all to the poor house. There is plenty to play bloods vs crips with on ACC and the like – but this particular debate requires reasoning, research, analysis and some tough decision making, rather than “my favourite colour is” style debating.

      • Pat 5.1.1

        Well put Baron.

        We also forget that our inflation focused monetary policy of the last 20 years has given us a long period of interest rate STABILITY. We all cry foul when home mortgage rates get up to 8% but we have forgotten what high interest rates really look like.

        Trying to keep inflation, interest rates and exchange rates under control in a fast based global environment is like trying to juggle 3 bars of soap. We need a reasoned debate. But Goff should be admitting that until a better policiy option comes along he will stick with the status quo.

      • Draco T Bastard 5.1.2

        and that right thinking is akin to child molestation

        No, it’s that it’s not based in reality.

      • lprent 5.1.3

        Monetary policy is one of the areas where there is no room for partisan politicking, unless you want to drive us all to the poor house.

        Yeah. However NACT are untrustworthy when it comes to doing the bipartisan thing – the climate change / ETS debate is in the same category, and NACT has been treating it as a political football for most of this decade.

        I can’t see any real point in bothering with them. It isn’t like they ever come up with any good ideas…

  6. tc 6

    Good post and good on him for wanting this debate started and agree with MickyS that he does look more like a PM than JK does, but there’s nothing new in that as my labrador looks a better PM than JK as she knows her boundaries and sticks to them.

    I just think this plays into NACT’s hands as the debate is way over most peoples heads, especially the swingers and smackers so JK can toss a few well crafted slogans at it and watch it fly away from causing them any trouble.

    I just hope this doesn’t detract from the obvious wins to be had in ETS/ACC/education/Energy/Industrial relations arenas, to name a few, which the voters can understand and influence their 2011 vote on.

    If this is a bold strategy to wrest back the agenda then it’s relying on intelligent debate from Fed Farmers/Business/media etc……if I was JK I’d be pretty relaxed about where this is going.

    • Daveo 6.1

      Don’t underestimate the potential for major conflict within Fed Farmers and the business lobby over this. Business owners in the productive economy have been asking for changes along the lines of what Goff is asking for years.

      It’s the monetarist ideologues at Business NZ, the EMA and the Feds that are behind all the wailing, not the businesses that actually have to try and turn a buck with a fluctuating exchange rate.

  7. randal 7

    dont forget the golden rule marty.
    i.e. he who has the gold makes the rules.
    there is no point in having a system that is supposedly ideologically pure and designed to cope with an economy of 350 million people unless there is some benefit to somebody.
    turning it loose on this country was just another mad kiwi scheme for using monetary “laws” to fleed an unsuspecting populacewhile the framers (framers) reaped the untold benefits that avalanched down on them before the 1987 crash.
    i.e. also designed to fleece the consumers and prick the bubble.

  8. Gosman 8

    Once again a commentator from the left of the political spectrum makes comments about economics which ignore basic economic fundamentals.

    In case you forgot, NZ runs rather high Current Account deficits. What this means is that the country needs to borrow a lot of money from people overseas to fund this. This explains why our Interest rate’s have to be much higher than some place like Japan. We need the money from the Carry trade to fund out lifestyles.

    The implications for having a less attractive interest rate is obviously less capital inflows which, ironically means higher cost of capital (i.e. Interest) for the consumer. This is unless you do something drastic to reduce the Current Account Deficit, which I not Labout failed to do anything about in their nine years in office.

    • This is unless you do something drastic to reduce the Current Account Deficit, which I not[e] Labout failed to do anything about in their nine years in office

      Well they did pay off all of the Crown debt. They admittedly did not stop individuals borrowing more and more from overseas banks so that they could buy houses off each other for greater and greater amounts but it looks like Phil and David Cunliffe are now onto this.

      We need a few things:

      1. A capital gains tax. This incessant search for tax free profits in land speculation has to be curtailed.
      2. A lower and more stable exchange rate. Exporters including farmers have been hit for years.
      3. Greater local ownership of public NZ companies. The Cullen fund was one way of achieving this.

      Labour were part way there and were much closer to the ideal situation that Key is. I am sure that he is relaxed about the way that things are.

      • Gosman 8.1.1

        You can’t really get a lower and more stable exchange rate until you deal with the issue of the Current Account though. All you will do by lowering the OCR is increase the cost of capital for the average consumer and business. As for you views on the Cullen fund, where was it stipulated that this was for the purpose of local ownership?

      • Gosman 8.1.2

        On top of that, what other methods are there to lower an exchange rate and stabilise it?

        I don’t think Government intervention in the Forex markets is a sustainable policy long term. The Market determines the price of something, not the Government.

        • snoozer 8.1.2.1

          You’ve got the causation a little confused, gosman. A large part of the current account deficit is profits heading overseas to people involved in the carry trade who have leant money to nzers for mortgages on overpriced homes.

          ideally we wouldn’t have this huge pool of easy credit for housing speculation and, then, we wouldn’t need to be sending the profits from the lending on that overseas.

          I have not seen it argued anywhere, except by you, that the reason for our OCR being relatively high is to promote the carry trade.

          • Gosman 8.1.2.1.1

            You’d like to think that wouldn’t you snoozer but then again you have little idea of how the finacial sector works. By your reckoning we should be able to eliminate the Current Account Deficit just by imposing capital controls on foreign owned companies repatriating profits. Some countries have had this policy in place. One of them is Zimbabwe. For some reson they still have a massive problem with spending more on foreign currency than they get in. I wonder why?

    • Draco T Bastard 8.2

      Once again a commentator from the left of the political spectrum makes comments about economics which ignore basic economic fundamentals.

      You’re the one who ignoring basic economic fundamentals. I know this because the neo-liberal economic policy assumes them all away so that it doesn’t have to deal with them.

      Also, the solution that you describe is best corrected by the people actually living within their means and not by more borrowing.

    • Bored 8.3

      “Once again a commentator from the left of the political spectrum makes comments about economics which ignore basic economic fundamentals”….let you into a little secret here Gos, not everybody agrees with the economic fundamentals you propose. There are many theories and models, I have yet to find one that encompasses the total truth to the degree your statement claims. And to claim what you do ossifies any debate or change, which in itself is a recipe for disaster.

  9. Pat 9

    Gotta love that right wing champion Phil Goff.

    Export-led recovery, eliminate current account deficits (Treasury have some ideas on this, Phil).

    Why do they fight so much. Goff and Key are so alike they should be best mates.

    • Gosman 9.1

      You have a good point. All Goff is offering is a return to the where we were pre-1984 that served us so well. LOL!

      • snoozer 9.1.1

        no. goff and others are saying let’s do better. No monetary policy concensus lasts forever. It’s stupid to say we can’t do better than we have now. That doesn’t mean returning to the past.

        Pat. The Left isn’t anti-exporting. The Left is pro-full employment and good wages, anti sending the profits of our work overseas – for that to happen the economy needs to be healthy.

        • Gosman 9.1.1.1

          I just love this whole ‘Sending profit’s overseas is bad’ mantra that is being repeated here.

          Why don’t you just advocate massive capital controls like they have in places like Zimbabwe?

          • RedLogix 9.1.1.1.1

            How about just retaining the profits here in NZ because they were created using NZ capital, labour and resources?

            • The Baron 9.1.1.1.1.1

              Ah, but alot of them weren’t created using capital from NZ. Domestic capital scarcity is one of our most massive problems, because we have no realy asset base to allow domestic investment.

              So… are you actually saying that foreign investors don’t deserve a return? If so, then where is the cash going to come from to build anything?

            • Draco T Bastard 9.1.1.1.1.2

              Ah, but alot of them weren’t created using capital from NZ.

              Actually, almost all foreign investment is in already existing and profitable businesses. The foreign capital did nothing for it and has often been used to close the local business down and shift it’s work overseas.

              Foreign ownership really is bad for the economy.

      • lprent 9.1.2

        Your history is pretty poor. Actually probably closer to pre-1976 if you wanted to make comparisons.

        But in reality this will all be uncharted territory because the autonomy of the Reserve Bank didn’t exist prior to the current RBA.

    • lprent 9.2

      Something about objectives perhaps?

      Key’s look more personal for him and his mates rather than being good for the country. Just look at the ETS.

  10. ben 10

    Marty, you are leaving out half the story.

    Your concern under the current environment is that the interest differential between NZ and the world is too great, and you believe that an alternative monetary policy will alleviate this. Fine so far; let’s say you’re right.

    The problem is this. Let’s say the new regime does what you want and reduces or elminates the carry trade by reducing or eliminating the interest differential. Now New Zealand’s interest rates are tied to foreign interest rates (perhaps with a smaller margin). Even if this does reduce exchange rate volatility, what is sacrificed is control over our own money supply and inflation!

    Strangely, this basic trade-off is missing from your piece, as if the consensus that has existed for 20 years existed for no reason at all. Of course the world is simple when you leave half the story out.

    One argument for preferring exchange rate volatility to inflation is that the exchange rate is a single, visible price, that directly affects relatively few, whereas inflation interferes with every transaction in the economy, introducing distortions and frictions everywhere. You could at least acknowledge this and consider why the current setup isn’t worth the cost.

    Your analysis is worthless without at least considering this and other tradeoffs.

  11. Nick C 11

    The problem with any debate about Labour’s proposed changes to monetary policy is… that they havent proposed any changes.

    You can rave about the problems of the status quo all you like, but until an alternative is actually suggested we have no way of determining where Labour can improve the situation or not.

    I do wonder however given the negative reaction of most commentators whether Phil Goff will go hide in his shell and never announce any spesifics, hoping that everyone forgets he said it.

  12. mike 12

    Anyone else thinks it’s a little strange that after 9 years in power (and with Goff a senior Minister) there was no hint of monetary policy change……. Just 12 months into opposition and the system doesn’t work and the whole thing needs an overhaul???

    Goff and labour are a frigg’n joke and this desperation for attention is just laughable.

    • RedLogix 12.1

      Yes, very reprehensible. Helen Clark and Michael Cullen have of course defined the Labour Party for all time. Goff must not say anything ever.

      • mike 12.1.1

        Not a great rebuttal Red but you are in an indefensible position – the exact reason Goff will never lead labour to victory. He’s tarred with the same ‘old’ brush

  13. SPC 13

    You have all overlooked a changed reality to this debate since June

    Bollard’s new policy (announced June) is the major reform of monetary policy (and under current policy settings) which Goff is seeking. He seems to have not noticed its arrival.

    It’s called the “core funding ratio’ it diminishes the amount of offshore money financing bank lending and allows a looser “local” monetary policy (lower OCR).

    http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10 609289

    Sure more could be done – if government gave the RB more tools.

    Such could be a surcharge on mortgages (which could go on as an alternative to raising the OCR). Perhaps at .5% or up further to 1% of the mortgage.

    Otherwise government itself could

    1. Apply GST to loans on property and use the revenue to reduce tax on interest income (to a flat rate 20% – the most reasonable thing is to allow deduction of the CPI rate off the interest level before tax is assessed but some find complications to this process, a low flat rate achieves the same result for most of those able to save and is simple to apply and with PIE about now is not going to lose much income to government).
    2. Apply a form of CGT on rental property (paid as an annual land tax, rather than on the sale of the property – this so the income to government is consistent and is not avoidable).
    3. Apply a Tobin tax on New Zealand currency trades – and tell the IMF this is to help reduce the government’s budget deficit. And assist in an export led recovery – reduce the BOP deficit.

Links to post

Recent Comments

Recent Posts

  • Things to know about Whakaari/White Island
    Brad Scott, GNS Science VolcanologistThis post was originally published by GeoNet. Following the 9 December devastating eruption at Whakaari/White Island we have put together some information about the island. New Zealand’s most active volcano Whakaari/White Island is currently New Zealand’s most active volcano, it has been since an eruptive episode ...
    SciBlogsBy Guest Author
    7 hours ago
  • Status quo supports status quo
    The Justice Committee has reported back on its Inquiry into the 2017 General Election and 2016 Local Elections, with a host of recommendations about how to improve our electoral systems. Some of their recommendations are already incorporate din the Electoral Amendment Bill currently before Parliament, but there's also a recommendation ...
    No Right TurnBy Idiot/Savant
    7 hours ago
  • The Greens abandon NeoLiberalism
    Back in 2017, in order to make themselves "electable" in the eyes of rich people who oppose everything they stand for, the Greens signed up for NeoLiberalism, adopting a restrictive set of "Budget Responsibility Rules" which basicly prevented them from using government to make things better. Now, they're finally abandoning ...
    No Right TurnBy Idiot/Savant
    8 hours ago
  • Lying about a failed war
    Since invading in 2001, the US has consistently claimed that their war in Afghanistan has been going well, even when it continued year after year after year. Of course, they were lying, and thanks to the Washington Post and the US Freedom of Information Act, we get to see just ...
    No Right TurnBy Idiot/Savant
    9 hours ago
  • Artificial Intelligence and You
    How should we think about artificial intelligence and the implications that it has for our work and leisure? There are many articles on artificial intelligence and its potential impacts on jobs, and the ethics of applications. These are important topics, but I want to focus on some less discussed aspects, ...
    SciBlogsBy Robert Hickson
    11 hours ago
  • Statistical manipulation to get publishable results
    I love data. It’s amazing the sort of “discoveries” I can make given a data set and computer statistical package. It’s just so easy to search for relationships and test their statistical significance. Maybe relationships which ...
    13 hours ago
  • More lies on the Twitter (Dan Hodges edition)
    The other big story concerning Leeds Hospital is Boris Johnson's bizzare behaviour at Leeds Hospital, where he was confronted by a journalist and challenged about a four year old boy with suspected pneumonia who was left sleeping on the floor, rather than getting  abed like a sick kid would in ...
    15 hours ago
  • LabourActivistPunchedMattHancock’sSPADGate
    So, for a brief period of history, it was alleged that a protester had punched Matt Hancock's SPAD (not a euphemism; special adviser) when Hancock visited Leeds Hospital.This was reported by the likes of Robert Peston and Laura Keunssberg, as well as the less credible Guido Fawkes.  It also quickly ...
    16 hours ago
  • France’s anti-Zionism is anti-liberté
    by Daphna Whitmore Last week France passed a law that equates anti-Zionism with anti-Semitism. It is based on a definition of anti-Semitism that includes criticism of Israel such as: “Denying the Jewish people their right to self-determination, e.g., by claiming that the existence of a State of Israel is a racist ...
    RedlineBy Daphna
    1 day ago
  • Another bus lockout
    Over the past year we've seen major bus problems in Hamilton and Wellington, as drivers have sought better wages and an end to the bullshit of split shifts, which basicly see them "married to the job". And now its Auckland's turn. When NZBus's drivers planned low-level strike action of not ...
    No Right TurnBy Idiot/Savant
    1 day ago
  • Climate Change: Showing us how its done
    The government has been congratulating itself over the passage of the Zero Carbon Act, which sets out long-term emissions targets. But those targets are insufficient. Meanwhile, Denmark is showing us how its done:Denmark’s parliament adopted a new climate law on Friday, committing to reach 70% below its 1990 emissions in ...
    No Right TurnBy Idiot/Savant
    1 day ago
  • Public sector dysfunction should not be allowed to undermine freedom of information
    Another day, another piece of legislation with a secrecy clause. This time its the innocuous-seeming Mental Health and Wellbeing Commission Bill, which (after establishing a new body and making it subject to the OIA in three different ways) includes the rapidly-becoming-standard clauses enabling it to request information from other public ...
    No Right TurnBy Idiot/Savant
    1 day ago
  • “This is England, this knife of Sheffield steel…”
    The state of the United Kingdom is fractured, torn up, shredded. The Empire is gone, it died a long time ago. And yet, the country is still tracking with a lead in favour of the ones who play to the ingrained, class-bound division for political gain. It is a disgrace ...
    exhALANtBy exhalantblog
    3 days ago
  • CORSIA, coming soon to an airport near you
    On 27 September, Greta Thunberg addressed a crowd of 500,000 at the School Strike for Climate in Montreal, saying: “You are a nation that is allegedly a climate leader. And Sweden is also a nation that is allegedly a climate leader. And in both cases, it means absolutely nothing. Because ...
    SciBlogsBy Robert McLachlan
    3 days ago
  • Cloaking hate speech and fake news in the right to free expression.
    It should be obvious by now but let’s be clear: The same folk who regularly traffic in disinformation, misinformation and “fake news” are also those who most strongly claim that their freedom of expression rights are being violated when moves are made to curb hate speech (as opposed to protected ...
    KiwipoliticoBy Pablo
    3 days ago
  • The Physics (and Economics, and Politics) of Wheelchairs on Planes
    Michael Schulson When Shane Burcaw flies on an airplane, he brings along a customized gel cushion, a car seat, and about 10 pieces of memory foam. The whole arsenal costs around $1,000, but for Burcaw it’s a necessity. The 27-year-old author and speaker — who, alongside his fiancée, Hannah ...
    SciBlogsBy Guest Author
    4 days ago
  • To Advance Civil Rights, Oppose Transgender Extremism
    We are very pleased to publish this submission is from Lucinda Stoan. She is a social justice activist, mother, and educator, based in Washington State in the  US.   This detailed and comprehensive source-linked overview of trans issues and what is at stake will be useful for many people, especially in ...
    RedlineBy Daphna
    4 days ago
  • Faafoi should be fired
    Newshub last night reported that Broadcasting Minister Kris Faafoi had apparently promised to help out a mate with an immigration issue. While its normal for people to approach MPs for assistance in this area, when you're a Minister, the rules are different: as the Cabinet Manual says, Ministers must "at ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Adrian Orr – The Reserve Bank’s Revolutionary Governor?
    New Zealand's Underarm Banker: It bears recalling that the “independence” of the Reserve Bank Governor was for decades held up by neoliberal capitalists as the most compelling justification for passing the Reserve Bank Act. Interesting, is it not, how the ruling class’s support for the Bank’s independence lasted no longer than ...
    5 days ago
  • Driving Us Up The Poll.
    Rubbish In, Rubbish Out: Put all this together, and it’s difficult to avoid the conclusion that anyone who responds positively to a pollster’s request to “answer a few questions” is just ever-so-slightly weird. Desperately lonely? Some sort of psephological train-spotter? Political party member primed to skew the poll for or against ...
    5 days ago
  • Jordan Williams, Colin Craig podcast series announced
    “Free at last, Free at last, Thank God almighty we are free at last.” ― Martin Luther King Jr. A long and bitter court feud between former Conservative Party leader Colin Craig and Jordan Williams has been settled, with an apology and compensation from Williams. On Tuesday, Craig sent out ...
    The PaepaeBy Peter Aranyi
    5 days ago
  • Scientific integrity requires critical investigation – not blind acceptance
    Some people seem to want to close down any critical discussion of the current research into the relationship between water fluoride and child IQ. They appear to argue that claims made by researchers should not be open to critical review and that the claims be accepted without proper consideration ...
    5 days ago
  • Climate Change: The shameful reality
    The government has been congratulating itself over the passage of the Zero Carbon Act, which sets out long-term emissions targets. Meanwhile, Climate Action Tracker has the shameful reality: those targets are insufficient:While New Zealand is showing leadership by having passed the world’s second-ever Zero Carbon Act in November 2019, under ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • More secrecy
    The government introduced a Racing Industry Bill today. As an urban who horse racing as pointless-to-cruel, and gambling as a tax on stupidity and/or hope, this isn't normally a bill which would interest me in the slightest, beyond grumpiness at more government money for a dying industry. But there is ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • Unlikely online bully, Liam Hehir
    Check. Check. One, two, three, four. Is this thing ON? Hello readers, I logged in last night (yeah, it’s been a while) to mark THE END of the landmark legal case, Jordan Williams v Colin Craig, which (gulp) reached The Supreme Court, in which New Zealand’s most-defamed man was suing the politician he ...
    The PaepaeBy Peter Aranyi
    5 days ago
  • The Birth Of Israel: Wrong At The Right Time.
    Before The Birth: Israel’s most fervent supporters set their clocks ticking in Biblical times. They cite the kingdoms of David and Solomon as proof that, in the words of the Exodus movie’s theme-song: “This land is mine.” The majority of Israel’s backers, however, start their clocks in 1933 – the year Adolf ...
    5 days ago
  • Hard News: Public Address Word of the Year 2019: Korero phase
    In an unreliable, strange and confusing world, Public Address is proud to present a measure of comfort and stability by annually asking everyone what words or phrases sum up the year that's been – and then giving some of them consumer goods as prizes for being clever or simply lucky.Well, ...
    6 days ago
  • Generalist to specialist
    Both my parents are pretty handy – and they seem to have the right tools for most jobs in the garage and they know how to fix practically anything. A similar story could be told about their generation’s experience in the workforce – being a generalist was not unusual and ...
    SciBlogsBy Guest Author
    6 days ago
  • A “coincidence”
    When it was revealed that NZ First had tried to enrich itself from public office via the Provoncial Growth Fund, the Prime Minister assured us that everything was OK as Shane Jones, the Minister responsible for the fund, had recused himself. Except it seems that that recusal came very late ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Member’s Day
    Today is a Member's Day, and probably the last one of the year. After the marathon of the End of Life Choice Act, most of the bills up for debate today are uncontentious. First up is the second reading of Chlöe Swarbrick's Election Access Fund Bill. This will be followed ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Worse than I thought
    The Foreign Affairs, Defence and Trade Committee has reported back on the government's odious and tyrannical control orders bill. As expected, the fraudulent select committee process has made no significant changes (partly because they couldn't agree, but mostly because it was a stitch-up from the start, with no intention of ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • The cannabis bill and the referendum
    Yesterday, the government released its draft Cannabis Legalisation and Control Bill, which will be put to a non-binding referendum at the next election. I'm not a drug policy expert, but Russell Brown is, and he thinks its pretty good. And pretty obviously, it will be a massive improvement on the ...
    No Right TurnBy Idiot/Savant
    7 days ago
  • Hard News: The Cannabis Legalisation and Control Bill: pretty good so far
    As you're probably aware, the draft bill outlining the proposed legal cannabis regime to be put to a referendum late next year was published yesterday, and has already attracted a flurry of comment. It's notable that a good deal of the comment is about proposals that aren't actually new.A minimum ...
    7 days ago
  • Climate Change: Alignment
    One of the big problems in New Zealand climate change policy is the government working at cross-purposes with itself. It wants to reduce fossil fuel use, but encourages oil and gas exploration. It wants to reduce transport emissions, but then builds enormous new roads. The problem could be avoided if ...
    No Right TurnBy Idiot/Savant
    7 days ago
  • How climate change will affect food production and security
    Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. If you have a question you’d like an expert to answer, please send it to climate.change@stuff.co.nz According to the United Nations, food shortages are a threat ...
    SciBlogsBy Guest Author
    7 days ago
  • More bad faith
    Last year, the government announced it was ending offshore oil exploration by no longer issuing new permits. The idea was that the industry would then die off as permits expired. Except almost immediately the government revealed its bad faith, by saying they would extend permits and alter conditions to keep ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Banning foreign money from our elections
    The government has said it will ban foreign donations to political parties and candidates, and will be introducing legislation to be passed under all-stages urgency this afternoon. While I agree with the goal, I don't see a particular case for urgency, unless the government is concerned about a flood of ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Reforming the Education Acts
    The government introduced the Education and Training Bill to Parliament yesterday. Its a massive bill, which replaces both existing Education Acts, as well as various other bits of legislation (including some which are still proceeding through the House). I'll leave the serious analysis to teachers and people who actually know ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Bite-sized learning
    Amelia SharmanThere’s no one-size-fits-all when it comes to micro-credentials, those bits of bite-sized learning that can help workers stay on top of technological change.  What’s a micro-credential? While definitions vary, micro-credentials can be understood as short courses that allow people to learn new skills or have an existing competency recognised. ...
    SciBlogsBy Guest Author
    1 week ago
  • “Not The Labour Party We Once Knew.”
    All Smiles Now: Claire Szabo is taking up her presidential role after serving as the CEO of Habitat For Humanity. Which is absolutely perfect! After KiwiBuild was so comprehensively mismanaged by Phil Twyford, the party has not only elected a new president from a thoroughly respectable not-for-profit, but one who ...
    1 week ago
  • Marxist versus liberal methodology on transgender ideology/identity politics
    While much of the NZ left has transitioned to postmodern and identity politics in relation to transgender ideology, there are some very good articles about that deploy Marxist methodology in relation to this subject.  The one below is from the British marxist group Counterfire and appeared on their site here ...
    RedlineBy Admin
    1 week ago
  • Book review: The Farm by Joanne Ramos
    by Daphna Whitmore At Golden Oaks, a luxurious country retreat in the Hudson Valley, pregnant women have the best care money can buy. From the organic food, personalised exercise programmes, private yoga instruction and daily massages Golden Oaks looks like a country lodge for the upper class. Set some time ...
    RedlineBy Daphna
    1 week ago
  • Loosening the purse strings
    When Labour was running for election in 2017, it felt it needed to demonstrate "fiscal responsibility" and signed itself up to masochistic "budget responsibility rules". It was a fool's errand: the sorts of voters who demand fiscal responsibility are also the sorts of voters who believe that labour can never ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Climate Change: How to get there
    Writing in Stuff, Joel MacManus looks at what we need to do to meet the Zero Carbon Act's targets. The core of it:1. Convert 85 per cent of vehicles on the road to electric. 2. Eliminate fossil fuels from all industrial heating up to 300 degrees Celsius. 3. Double our ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • anti-vaxxers in a measles epidemic: so many ways to be untruthful
    “Anti-vaxers are a pro-death movement,” those comments from Dr Helen Petousis-Harris speaking about six more Measles related deaths in Samoa over the past twenty-four hours. “Anti-vaxers are a pro-death movement,” those comments from Dr Helen Petousis-Harris speaking about six more Measles related deaths in Samoa ...
    SciBlogsBy Alison Campbell
    1 week ago
  • Is Youth Vaping a Problem in New Zealand?
    Professors Janet Hoek and Richard Edwards, Emeritus Professor Phil Gendall, Jude Ball, Dr Judith McCool, Anaru Waa, Dr Becky Freeman Recent media reports have presented conflicting evidence on youth vaping in NZ. While some NZ school principals report concerns about increasing vaping on school grounds and confiscating vapes, ASH Year ...
    SciBlogsBy Public Health Expert
    1 week ago
  • In pursuit of “Freedom and Democracy”: Forever Wars in “America’s backyard”.
    “America the Beautiful!”, staunch defender of democracy, freedom and… a whole lot of despotic tyrants that play nice with what is called “the Washington Consensus.” America is indeed capable of immense good, but like any Nation, and most assuredly any aspirant to the mantle of Empire, great, immense evil. All ...
    exhALANtBy exhalantblog
    1 week ago
  • November ’19 – NZ blogs sitemeter ranking
    Image credit: The beginner’s guide to blogging I notice a few regulars no longer allow public access to the site counters. This may happen accidentally when the blog format is altered. If your blog is ...
    1 week ago
  • Whodunnit? Finding the mystery 1080 testing lab
    1080 is used to control pests in NZ. Its use is contested by a noisy few. A new report claims high levels of 1080 in rats washed up on a beach. Flora and Fauna of Aotearoa (F&F) won’t name the laboratory that did their testing. It has sparked a hunt ...
    SciBlogsBy Grant Jacobs
    1 week ago
  • Authoritarian Friends, Democratic Enemies.
    What Kind Of Empire? The thing for Kiwis to decide is what kind of empire they want to belong to. The kind that, while offering its own citizens democratic rights, demands absolute obedience from its “friends”? Or, the kind that, while authoritarian at home, takes a relaxed attitude to the ...
    1 week ago
  • Boris Johnson Goes Down
    It hasn't been a good week for the Conservatives, pollwise.  All major recent polls are showing their lead shrinking.Comparing each pollster's current (between 29/11 and 22/11) and previous most recent poll.Com Res - Conservative lead down 3 points.You Gov - Conservative lead down 1 point.Kantar - Conservative lead down 4 ...
    2 weeks ago
  • Interesting
    Within quick succession, Countdown maths wizard and twitterer Rachel Riley, alleged comedian David Baddiel and prominent lawyer Andrew Julius have all expressed very similar opinions / ideas:
    These #3billboards are going round London today, organised by ex-Labour people, horrified by what their party has become. Their principles haven’t changed, they’re ...
    2 weeks ago
  • Damn the Polls
    So, there have been a bunch of bad polls out for Labour, and even the Leftie's friend, Survation, have recently given the Conservatives a rip-snorting 11% lead.  You Gov's much vaunted MRP poll - which pretty much nailed the result in 2015 - is currently predicting a comfortable majority for ...
    2 weeks ago
  • Climate Change: Europe declares an emergency
    The European Parliament has voted overwhelmingly to declare a climate emergency:The European parliament has declared a global “climate and environmental emergency” as it urged all EU countries to commit to net zero greenhouse gas emissions by 2050. The vote came as scientists warned that the world may have already crossed ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • A Bi-Partisan Commitment To X-ing “P”.
    Pure Fear: Worse than Heroin, this drug’s addictive power was terrifying. People under its influence didn’t drift off to Elysium. Nor did it persuade inadequate individuals that they could conquer the world. No, this drug – pure crystal methamphetamine, “P” for short – unlocked the gates of Hell itself. It ...
    2 weeks ago
  • Advice about measles: when ignorance is definitely not a virtue
    As the rate of measles infection, and of deaths, continues to climb in Samoa, antivaccination activists infectious disease proponents seem intent on doubling down on their claims about vaccination. (Check pretty much any news-media FB post about measles & you’ll see exactly what I mean.) Unfortunately, some of them have ...
    SciBlogsBy Alison Campbell
    2 weeks ago
  • Samoa’s devastating measles epidemic – why and how bad?
    Samoa are experiencing a devastating measles epidemic. It is possible that 2-3% of the population will ultimately be infected by the time it is over. Hopefully the mass immunisation campaign currently under way can mitigate some of this, for many it is too late. The first question many people ask ...
    SciBlogsBy Helen Petousis Harris
    2 weeks ago
  • “It’s basic rights we are defending”: the Meghan Murphy interview
    Meghan Murphy is a Canadian writer and journalist She runs the Feminist Current website which she founded in 2012.  She was a keynote speaker for the Feminism2020 conference in Wellington this month. When Massey University cancelled the original venue booking Feminism2020 was hosted in Parliament by MP David Seymour. Meghan ...
    RedlineBy Admin
    2 weeks ago
  • A week of protests in Colombia
    Text and photos by Gearóid Ó Loingsigh Colombia has lived through one week of protests against the economic measures taken by president Duque. What looked like a protest that would fizzle out after its first day on November 21st is still going strong. Part of the reason for the continuance ...
    RedlineBy Admin
    2 weeks ago
  • Anti-neutrinos–When you are your own opposite
    Around a million billion pass through you each second, almost all originating from our sun, but few of them are likely to interact with you enroute. I was reading in a physics magazine earlier in the week about the nature of neutrinos. These are extremely numerous elementary particles, but only ...
    SciBlogsBy Marcus Wilson
    2 weeks ago
  • Exoplanets, life, and the danger of a single study
    By Pallab Ghosh There’s value in covering new research advances, even when the underlying science is unsettled. But there are also risks. The recent announcement that scientists discovered water on the planet K2-18b, 110 light years away, prompted a media swoon. News stories, including a piece written by me, billed ...
    SciBlogsBy Guest Author
    2 weeks ago
  • The Intersex Continuum
    I wrote this review a couple of years ago when I was still in the process of getting my head around the politics of transgenderism, and specifically the claim that intersex conditions lend support to the notion that sex is ‘socially constructed’. Since writing this review I have come across ...
    RedlineBy Admin
    2 weeks ago
  • Leaving us with the bill
    Two weeks ago, Malaysian-owned oil company Tamarind declared it was insolvent and went into administration after a failed offshore drilling campaign. Tamarind apparently specialises in buying oil fields at the end of their life and trying to squeeze out the last few drops of pollution. But part of their scam ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • How much does flying contribute to climate change?
    Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. If you have a question you’d like an expert to answer, please send it to climate.change@stuff.co.nz How much does our use of air travel contribute to the ...
    SciBlogsBy Shaun Hendy
    2 weeks ago
  • Climate Change: The task before us
    Two weeks ago, the Zero Carbon Act became law. Right this moment, the Climate Change Commisison will be working on its initial budgets for 2022-25 and 2026-2030, and the UN has just given them a very clear steer:Countries must make an unprecedented effort to cut their levels of greenhouse gases ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Among my favourite asteroids: (2309) Mr. Spock
    Minor planet/asteroid (2309) Mr. Spock is named not for the character in Star Trek, but for a cat that was itself imperturbable, logical, intelligent and had pointed ears In a preceding blog post I introduced one of my favourite asteroids, (2472) Bradman, and also mentioned (6581) Sobers amongst a few ...
    SciBlogsBy Duncan Steel
    2 weeks ago
  • Measles deaths and antivax misinformation
    Today the death toll from measles in Samoa rose to 32. All but four of the dead were less than 5 years old. Absolutely terrible, heartbreaking, news. That statistic alone should be enough to give the lie to the common claim by antivaccination activists plague enthusiasts that “measles is a ...
    SciBlogsBy Alison Campbell
    2 weeks ago
  • Colombia: the state murder of Dilan Cruz
    by Gearóid Ó Loingsigh It is late here in Bogotá, almost 11.30pm on Monday the 25th of November as I write this. The day began full of hope with yet more massive marches throughout the country, a mix of the International Day of Non-Violence Against Women and the National Strike. ...
    RedlineBy Admin
    2 weeks ago
  • Anti-fluoride propagandists appear not to read the articles they promote
    Anti-fluoride activists are rubbing their hands in glee over what they claim is “yet another study” showing fluoride harms the brains of children. But their promotion relies on IQ relationships which the paper’s authors acknowledge disappearing when outliers or other factors are considered. And they completely ignore other relationships ...
    2 weeks ago
  • The rise and collapse of classical political economy
    The feature below is the conclusion of A History of Economic Thought, whose author was a leading Marxist economist in Russia in the early 20th century, Isaac Ilyich Rubin.  The book arose from a course he ran at Moscow University following the Russian Revolution.  First published in Russian in 1929, ...
    RedlineBy Admin
    2 weeks ago
  • Among my favourite asteroids: (2472) Bradman
    There are many thousands of asteroids with formal names, some humdrum but other more noteworthy (depending on your predilections). One of my favourites, the name of which I was involved in suggesting, is (2472) Bradman, named for the Australian cricketing great.  As a minor planet (synonym: asteroid) spotter, I have ...
    SciBlogsBy Duncan Steel
    2 weeks ago
  • Some cheap soundbites i thought up while reading about the underwhelming Conservative manifesto
    Tory manifesto: big on austerity, low on promise, non-existent on delivery. The Tories: the party so big on ambition they couldn't be arsed writing a manifesto. MLK: "I have a dream!"BJ: "I'll just have a nap." Labour: Broadband!Tories: Narrow minds! Labour have hope, dreams and ambition. The Tories will save ...
    2 weeks ago
  • Measles vaccination required to travel to islands and Phillipines
    The Ministry of Health has announced that “people under the age of 50 travelling from New Zealand to Samoa, Tonga, Philippines and Fiji” are now on the list of national priorities for MMR vaccination. Given the outbreaks of measles in Samoa, Tonga, Philippines and Fiji, the Ministry of Health is ...
    SciBlogsBy Grant Jacobs
    2 weeks ago
  • Giving the finger to Beijing
    Hong Kong has been protesting for six months for, demanding democracy, human rights, and an end to police violence. Today, they went to the polls in district council elections - a low-level of government with virtually no power, similar to community boards in New Zealand. But while the positions themselves ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Colombia’s national strike
    Text and photos by Gearóid Ó Loingsigh On Friday 22nd of November a curfew came into effect and troops were deployed on the streets, here in Bogota. It was the first time since September 1977 that a curfew had been imposed on the city. The decision was a cynical pre-planned ...
    RedlineBy Admin
    2 weeks ago

  • Final steps for racing industry reform
    Racing Minister Winston Peters has welcomed the first reading of the Racing Industry Bill in parliament today. This is the second of two Bills that have been introduced this year to revitalise New Zealand’s racing industry. “Our domestic racing industry has been in serious decline.  The Government is committed to ...
    BeehiveBy beehive.govt.nz
    7 hours ago
  • Funding to promote New Zealand Sign Language initiatives
    Minister for Disability Issues, Carmel Sepuloni, is pleased to announce that $291,321 is to be awarded to national and local community initiatives to maintain and promote the use of New Zealand Sign Language (NZSL). “New Zealand is one of the few countries  in the world where Sign Language is an ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • How New Zealand defines and recognises veterans
    Minister for Veterans Ron Mark has announced today the Coalition Government’s initial response to work completed by the independent statutory body, the Veterans’ Advisory Board. “When Professor Ron Paterson completed his review of the Veterans’ Support Act in 2018, he made a number of recommendations, including one which I referred ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Government to fund lion’s share of Ohakea water scheme
    The Government will fund the bulk of the cost of a rural water supply for the Ohakea community affected by PFAS contamination, Environment Minister David Parker announced today at a meeting of local residents. This new water scheme will provide a reliable and clean source of drinking water to the ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Prime Minister statement on White Island eruption
    I have had the opportunity to be briefed on the details of the volcanic eruption of Whakaari/White Island, off the coast of Whakatane in the Bay of Plenty.  The eruption happened at 2.11pm today.  It continues to be an evolving situation.  We know that there were a number of tourists ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Govt funds $100k for weather-hit communities
    Prime Minister Jacinda Ardern and Minister of Civil Defence Peeni Henare have today confirmed initial Government support of $100,000 for communities affected by the severe weather that swept across the South Island and lower North Island over the weekend. The contribution will be made to Mayoral relief funds across the ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Death of NZ High Commissioner to Cook Islands
    New Zealand's High Commissioner to the Cook Islands, Tessa Temata, died in Palmerston North over the weekend, Foreign Minister Winston Peters said today. Ms Temata, 52, had recently returned to New Zealand for medical treatment. "On behalf of the Government and the Ministry of Foreign Affairs and Trade, we extend ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Wellington rail upgrade full steam ahead
    Transport Minister Phil Twyford today announced construction is underway on Wellington commuter rail upgrades which will mean more frequent services and fewer breakdowns. The upgrades include converting the Trentham to Upper Hutt single track section to a double track, with a new signalling system, upgraded stations and level crossings, and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Defence Climate Change Implementation Plan released
    Minister of Defence Ron Mark and Minister for Climate Change James Shaw have announced the release of a Defence Climate Change Implementation Work Plan, titled Responding to the Climate Crisis: An Implementation Plan.  The plan sets out a series of recommendations based on the 2018 New Zealand Defence Assessment, The ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Govt releases funding to support South Canterbury
    A medium-scale adverse event has been declared for the South Canterbury district, which will see up to $50,000 in funding made available to support farming communities which have been significantly affected by recent heavy rain and flooding in the area, says Agriculture Minister Damien O’Connor. “Two weeks of solid rain ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Speech at launch of Rethinking Plastics Report
    Thank you Professor Juliet Gerrard and your team for the comprehensive and extremely helpful report and recommendations. Thank you too to all the stakeholders and interested parties who have contributed ideas and thinking to it. “Making best practice, standard practice” is a great framework for change and the action plan ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt pledges next steps on plastic waste
    The Government will phase out more single-use plastics following the success of its single-use plastic bag ban earlier this year and the release today of a pivotal report for dealing with waste. Prime Minister Jacinda Ardern has welcomed the Rethinking Plastics in Aotearoa New Zealandreport, released by her Chief Science Advisor ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • International student enrolments grow in universities and the regions
    International education continues to thrive as the Government focuses on quality over quantity, Education Minister Chris Hipkins said. The tuition revenue from international education increased to $1.16 billion last year with the average tuition fee per student increasing by $960. The total number of international students enrolled in New Zealand ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to Government Economics Network 2019 Conference
    I want to talk about one of the most pressing issues in our national life: the housing crisis and the poor performance of our cities. The argument I want to make to you is that generations of urban land use policy have lacked a decent grounding in economics. The consequences ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • DHB leadership renewed and strengthened
    Health Minister Dr David Clark says new appointments to DHBs represent a significant changing of the guard, with 13 new chairs including four Māori chairs. Today 76 appointments have been announced to complement elected board members, as well as eight elected members appointed as either chair or deputy chair.  Four ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Tabuteau to advance New Zealand’s trade and political interests with European partners
    Parliamentary Under-Secretary for Foreign Affairs, Fletcher Tabuteau, is travelling to Germany, Poland, Austria, and Spain next week to bolster New Zealand’s political and trade relationships in Europe. While in Spain, Mr Tabuteau will represent New Zealand at the 14th Asia-Europe (ASEM) Foreign Ministers’ Meeting in Madrid. “New Zealand strongly supports ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Statement from the Prime Minister on Kris Faafoi
    “I’ve spoken to Minister Faafoi, who has apologised for his poor handling of this issue,” Jacinda Ardern said. “I have confidence in Kris as a hardworking and effective Minister, but this should have been dealt with in a much clearer manner, and I’ve made my views on that very clear ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Tonga-New Zealand Joint Ministerial Forum
    Deputy Prime Minister Winston Peters met with Tongan Prime Minister and Foreign Minister Pohiva Tu'i'onetoa in Wellington today. The pair signed a Statement of Partnership setting out joint priorities for cooperation out to 2023.  “We welcomed Prime Minister Tu'i'onetoa on his first visit to New Zealand as Prime Minister. Tonga ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Shooting in Kurow
    The Minister of Police Stuart Nash says his sympathies are with the family of a man who died after being shot by Police in Kurow. “Initial reports are that Police were called by a family member to help the man who was threatening to harm himself,” Mr Nash says. “However ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government delivers funding boost for ethnic communities
    Ethnic communities will be able to plan and deliver more community initiatives thanks to an increase in Government funding, Minister for Ethnic Communities Hon Jenny Salesa said today. “Ensuring Aotearoa New Zealand is a place we can all be proud to call home has been a key priority of our ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Govt supports Southland farmers in sustainability
    Healthier waterways, better productivity and farmer wellbeing are front and centre in a new project involving more than 1000 Southland farmers and growers. Minister of Agriculture Damien O’Connor today announced that the Thriving Southland Change and Innovation Project is the first region-wide extension programme supported by the $229 million Sustainable ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Flood of support for Top of the South catchment
    Work to look after nature and restore freshwater quality in Te Hoiere/Pelorus River catchment is getting a significant boost, thanks to new Government funding support Minister for Conservation Eugenie Sage announced in Canvastown today. “Every New Zealander should be able to swim in their local river without getting sick, and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Eight Queen’s Counsel appointed under new criterion
    Eight Queen’s Counsel have been appointed under a process that includes the new criterion of a commitment to improving access to justice, Attorney-General David Parker announced today. “The new criterion was included this year. It emphasises that excellence and leadership in the profession can be seen through a wider, community ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Major expansion for Wellington’s Onslow College
    Onslow College in Wellington will get 20 new classrooms for more than 400 students, Education Minister Chris Hipkins announced today. The much-needed investment will relieve growth pressure the school has been experiencing for some time. Seven existing classrooms which have deteriorated over time will also be replaced, bringing the total ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Talented young Kiwis awarded PM’s Scholarships to Asia and Latin America
    More than 250 young New Zealanders will add international experience to their education, thanks to the latest Prime Minister’s Scholarships for Asia (PMSA) and Latin America (PMSLA), Education Minister Chris Hipkins announced today. This round of scholarships supports 252 recent graduates or current students to undertake study, research or internships ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government to improve competitiveness and transparency in the retail fuel market
    Consumers will benefit from a more competitive, transparent retail fuel market as a result of changes the Government will be making in response to the findings of the Commerce Commission’s study of the fuel sector. “We accept the Commission’s findings and, as the Prime Minister has said, we’re ready to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • More cancer medicines for more people
    Five new cancer medicines have now been funded this year, meaning thousands of people have more treatment options PHARMAC has today announced that it has approved two new medicines for funding – fulvestrant for breast cancer and olaparib for ovarian cancer. This follows earlier decisions on advanced lung cancer treatment alectinib, ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government acts to sort out electoral ‘coin toss’ problem
    The Minister of Local Government, Hon Nanaia Mahuta says the Government will consider making changes to local electoral legislation before the 2022 elections to fix the problems that have arisen where elections are settled by a coin toss.  The Minister says the recount process in the Murupara- Galatea ward at ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • NZ to Join IMO Convention to Reduce Ship Emissions
    New Zealand will sign up to new international maritime regulations to reduce ship emissions and lift air quality around ports and harbours, Associate Transport Minister Julie Anne Genter announced today. Subject to completion of the Parliamentary treaty examination process, New Zealand will sign up to Annex VI of MARPOL, an ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Bill to empower urban development projects
    New legislation to transform our urban areas and create sustainable, inclusive and thriving communities will tomorrow be introduced to Parliament, Urban Development Minister Phil Twyford said. “The Urban Development Bill gives Kāinga Ora-Homes and Communities the tools it needs to partner with councils, communities, mana whenua and private developers to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Early Learning Action Plan to kickstart long term change
    Today’s launch of He taonga te Tamaiti: Every child a taonga: The Early Learning Action Plan 2019-2029 provides the foundation for long-lasting changes to early learning, Education Minister Chris Hipkins says.   “Early learning will be one of the Government’s top education priorities going into 2020,” Chris Hipkins said.   ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Climate change lens on major Government decisions
    Major decisions made by the Government will now be considered under a climate change lens, Minister for Climate Change James Shaw announced today. “Cabinet routinely considers the effects of its decisions on human rights, the Treaty of Waitangi, rural communities, the disability community, and gender – now climate change will ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • New Tertiary Education Commission Board announced
    Education Minister Chris Hipkins today announced the appointment of Māori education specialist Dr Wayne Ngata and Business NZ head Kirk Hope to the Board of the Tertiary Education Commission (TEC). Dr Alastair MacCormick has been reappointed for another term. “Wayne Ngata, Kirk Hope and Alastair MacCormick bring a great deal ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Next phase of Pike River recovery underway in time for Christmas
    The next phase of the Pike River Re-entry project is underway, Minister Responsible for Pike River Re-entry Andrew Little says. “Fresh air will be pumped into the Pike River Mine drift this week, following acceptance of the plan for re-entry beyond the 170m barrier by New Zealand’s independent health and ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Insurance contracts to become easier to understand and fairer for consumers
    New Zealand consumers will have greater certainty about their insurance cover when they need to make claims as a result of proposed government changes. “Insurance is vitally important in supporting consumers and businesses to be financially resilient when unexpected events happen,” Minister of Commerce and Consumer Affairs Kris Faafoi said. ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • A new opportunity for Ngāpuhi collective and regional negotiations
    The Crown is providing an opportunity for the hapu of Ngāpuhi to rebuild its framework from the ground up for collective negotiations to deal with its historical Treaty claims, Minister for Treaty of Waitangi Negotiations Andrew Little and Minister for Māori Development Nanaia Mahuta announced today. The Crown is also ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Referendums Framework Bill passes third reading
    A Bill enabling referendums to be held with the 2020 General Election has passed its third reading. Justice Minister Andrew Little says the Act is important for upholding the integrity of New Zealand’s electoral process. “The Government has committed to holding a referendum on legalising recreational cannabis at the next ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Referendums website and initial cannabis Bill launched
    The first release of public information on the two referendums to be held at next year’s General Election was made today with an informative new Government website going live. Additionally, the draft Cannabis Legalisation and Control Bill has been released, showing the strict controls on cannabis that will apply if ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government to ban foreign donations
    The Government is taking action to protect New Zealand from foreign interference in our elections by banning foreign donations to political parties and candidates, Justice Minister Andrew Little announced today. Legislation will be introduced to Parliament this afternoon and passed under urgency. “There’s no need for anyone other than New ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Governments and tech converge to strengthen joint response to online terror events
    Governments and tech companies are holding a two-day workshop, hosted by YouTube/Google in Wellington, to test the Christchurch Call Shared Crisis Response Protocol. The workshop aims to refine and strengthen the response in the event of a terrorist attack with online implications. Companies, governments, civil society experts and NGOs will ...
    BeehiveBy beehive.govt.nz
    1 week ago