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Comments on: RBNZ speech: Inflation targeting serves NZ well http://www.tvhe.co.nz/2008/07/31/rbnz-speech-inflation-targeting-serves-nz-well/ The Visible Hand in Economics Thu, 25 Sep 2008 12:24:01 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: vysakh http://www.tvhe.co.nz/2008/07/31/rbnz-speech-inflation-targeting-serves-nz-well/#comment-1929 Thu, 25 Sep 2008 12:24:01 +0000 http://tvhe.wordpress.com/?p=764#comment-1929 hiiiii guys wat fuckin is inflation wanna hav sex wit me??????????

]]> By: What’s behind the 50-point cut? « The visible hand in economics http://www.tvhe.co.nz/2008/07/31/rbnz-speech-inflation-targeting-serves-nz-well/#comment-1928 Thu, 11 Sep 2008 02:03:30 +0000 http://tvhe.wordpress.com/?p=764#comment-1928 […] expectations – if they are failing in that role, they are failing altogether. Dr Bollard even said as much recently – so why has he deviated […]

]]> By: Prison Planet http://www.tvhe.co.nz/2008/07/31/rbnz-speech-inflation-targeting-serves-nz-well/#comment-1927 Sat, 02 Aug 2008 00:13:18 +0000 http://tvhe.wordpress.com/?p=764#comment-1927 The White Rabbit put on his spectacles. ‘Where shall I begin, please your Majesty?’ he asked. ‘Begin at the beginning,’ the King said gravely, ‘and go on till you come to the end: then stop.’LewisCarrollLewis Carroll, Alice in Wonderland

]]> By: Matt Nolan http://www.tvhe.co.nz/2008/07/31/rbnz-speech-inflation-targeting-serves-nz-well/#comment-1926 Thu, 31 Jul 2008 06:05:04 +0000 http://tvhe.wordpress.com/?p=764#comment-1926 “The way things are going, inflationary expectations are the least we have to worry about right now.”

Not sure that I agree – the data releases over the next three months will be bad, but if the Reserve Bank forgets to mention inflation expectations things will be worse.

As long as they show that they are watching inflation, and that they will act, I’m happy – its all a story of credibility ultimately.

“A consumption-led recovery is not the best way to go about it. Unless it’s more output driven, all gains are illusory.”

It depends if the slowdown is the result of a sudden reduction in demand or an actual decrease in the countries productive capacity.

Demand was running too hot in the past – but the Bank fears that its turned too far to soon, and so it wants to help it on the way down, this is fine.

However, they have to be careful not to go too far – as you say, if the slow down is solely the result of drought and high petrol prices our actual natural rate of output is currently lower, which implies that efforts to “cushion it” on the way down will stoke inflationary pressures – maybe 😛

]]> By: Will de Cleene http://www.tvhe.co.nz/2008/07/31/rbnz-speech-inflation-targeting-serves-nz-well/#comment-1925 Thu, 31 Jul 2008 03:18:54 +0000 http://tvhe.wordpress.com/?p=764#comment-1925 That remains to be seen. A consumption-led recovery is not the best way to go about it. Unless it’s more output driven, all gains are illusory.

]]> By: jafapete http://www.tvhe.co.nz/2008/07/31/rbnz-speech-inflation-targeting-serves-nz-well/#comment-1924 Thu, 31 Jul 2008 01:50:16 +0000 http://tvhe.wordpress.com/?p=764#comment-1924 Excellent post. I agree with you, but did think that your earlier post was a little too pessimistic about the RBNZ. The way things are going, inflationary expectations are the least we have to worry about right now.

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