My apologises for the lack of updating over the past few days. I am still in shock from the recent dovish MPS and the following call by Ganesh Nana (and previously by Joe Stiglitz) that inflation targeting was a failure.
In a sense I am struggling because I feel betrayed by the economics profession in New Zealand, with ANZ and BNZ both seemingly applauding the RBNZ’s dovishness. Thank goodness for Westpac, Infometrics (subscription needed) and interest.co.nz – if they hadn’t criticised the Bank’s actions I would have felt decidedly alone.
In time my shock will make way for anger, and I will effectively be going to war with our current set of economic institutions. Growing up I was proud of the way NZ was handling fiscal and monetary policy – now I have realised that we have thrown all this hard work away over the last decade.