Sunday, August 3, 2008

Life on Mars

Reserve Bank Email Service


Date 30 July 2008


Inflation targeting serves NZ well

New Zealand's inflation-targeting framework continues to serve theeconomy well, but we should be careful not to ask too much of it,Reserve Bank Governor Alan Bollard said today.

In a speech titled "Flexibility and the Limits to Inflation Targeting",Dr Bollard said inflation targeting is the best approach New Zealand andmany other similar countries have yet found for monetary policy, among alimited number of viable alternatives.

"Of course, we continue to seek improvements. But overall, and even inthe current very difficult circumstances, the flexible inflationtargeting framework positions us well to manage the ongoing shocksimpacting the New Zealand economy."

Prima facie evidence that the man lives on another planet than most New Zealanders: inflation is 4% and predicted to reach 4.8% in qtr 4.


Barnsley Bill said...

it is over 6 in real terms. if you multiply the last quarter by 4 it is 6.8. Using data that is nearly a year old just gives him some breathing space.
And welcome back sir... Your lack of posts diminishes the blogsperience.

Clunking Fist said...


I am a bit slack as I just can't seem to get to the computer much these days!

Mark Wadsworth said...

I drew your picture.

In case you think that's too flattering, try this.