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Comments on: What’s behind the 50-point cut? http://www.tvhe.co.nz/2008/09/11/whats-behind-the-50-point-cut/ The Visible Hand in Economics Wed, 17 Sep 2008 02:01:09 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: More confidence? « The visible hand in economics http://www.tvhe.co.nz/2008/09/11/whats-behind-the-50-point-cut/#comment-2437 Wed, 17 Sep 2008 02:01:09 +0000 http://tvhe.wordpress.com/?p=1106#comment-2437 […] confidence survey was released for September. This survey was taken mostly before the massive 50 basis point cut to the official cash rate – but according to this document it was still at 23%. This was the […]

]]> By: Matt Nolan http://www.tvhe.co.nz/2008/09/11/whats-behind-the-50-point-cut/#comment-2439 Fri, 12 Sep 2008 22:49:22 +0000 http://tvhe.wordpress.com/?p=1106#comment-2439 “That’s called good luck rather than good management.”

Indeed, but it also does not imply that the inflation problem disappears – as it is both a change in the price level (not growth) and could be construed as a relative price change.

However, I was just putting that forward as it is conceivable that CPI growth could head inside the target for one quarter – but that does not mean that the inflation problem is over 🙂

]]> By: Paul Walker http://www.tvhe.co.nz/2008/09/11/whats-behind-the-50-point-cut/#comment-2438 Fri, 12 Sep 2008 21:48:38 +0000 http://tvhe.wordpress.com/?p=1106#comment-2438 “Effectively yes – remember a slump in import prices could drive CPI growth back into the target band, but this isn’t the same as controlling inflation”

That’s called good luck rather than good management.

]]> By: Matt Nolan http://www.tvhe.co.nz/2008/09/11/whats-behind-the-50-point-cut/#comment-2441 Fri, 12 Sep 2008 04:55:05 +0000 http://tvhe.wordpress.com/?p=1106#comment-2441 “Eric has expanded on his views on Inflation targeting and the medium term and I think he has a point”

Linked 🙂

“And if it doesn’t can inflation be outside the band forever? I’m being to think it can be!!!”

Effectively yes – remember a slump in import prices could drive CPI growth back into the target band, but this isn’t the same as controlling inflation 🙂

]]> By: Paul Walker http://www.tvhe.co.nz/2008/09/11/whats-behind-the-50-point-cut/#comment-2440 Fri, 12 Sep 2008 04:10:22 +0000 http://tvhe.wordpress.com/?p=1106#comment-2440 “Dr Crampton’s call is starting to make a lot of sense – no matter how uncomfortable I am admitting it”

Eric has expanded on his views on Inflation targeting and the medium term and I think he has a point. I would love to know what the medium term is? Does the RB have any notion of what it means? And if it doesn’t can inflation be outside the band forever? I’m being to think it can be!!!

]]> By: September 2008 MPS and OCR decision « The visible hand in economics http://www.tvhe.co.nz/2008/09/11/whats-behind-the-50-point-cut/#comment-2442 Thu, 11 Sep 2008 03:32:04 +0000 http://tvhe.wordpress.com/?p=1106#comment-2442 […] and world growth falling. This is a mistake methinks.  We do a brief discussion of issues here. Possibly related posts: (automatically generated)From one mother of an ADHD child to […]

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