Again Mr Cullen decided to tell us what he thinks about monetary policy. To tell you the truth, I wouldn’t care what he says (even with his Phd in Social and Economic history) if it wasn’t for the fact that he could force a change in monetary policy. He is the finance minister, in public he is supposed to keep out of monetary policy and stick to only fiscal policy. The more he threatens to intervene, the more uncertainty it creates, which in turn leads to a volatile exchange rate.
The institutions he should be looking to improve are the core government departments. If the productivity of government spending was higher, we would not be facing this inflation problem.
Don’t forget the sort of inflationary pressures that will come out of the Labour governments traditional lolly-scramble. He’ll blame anyone except the government for his poor management of the economy.