The daily post for today has been delay to next week – as this issue needs to be covered now. That’s what the RBNZ is likely hearing when columns like this appear. This one is from Bernard Hickey, where he bemoans the Bank’s decision to signal an increase in interest rates (which will increase long …
Category Archive: Monetary economics
Permanent link to this article: http://www.tvhe.co.nz/2011/07/29/damned-if-you-do-damned-if-you-dont/
Jul 27 2011
Core funding ratios, monetary policy, and trade-offs
In a recent Herald article, Geoff Simmons discusses the core funding ratio. I work near the GMI team, and I have a lot of time for their outside the box thinking on issues – however, this is one case where I will have to respectfully disagree with the conclusions. What was the conclusion? It was …
Permanent link to this article: http://www.tvhe.co.nz/2011/07/27/core-funding-ratios-monetary-policy-and-trade-offs/
Jul 25 2011
Keeping NZ inflation in perspective
Holy shit. Since I’ve started getting the chance to read opinion pieces again I’ve noticed one extreme theme running through them – a sharp and angry fear of inflationary pressures. This in itself doesn’t bother me, but it has been combined with people saying that ALL of the following will happen: The economy will implode …
Permanent link to this article: http://www.tvhe.co.nz/2011/07/25/keeping-nz-inflation-in-perspective/
Apr 04 2011
Central Banks: Second best policy and operational separation
Following a major crisis, such as the one we’ve just experienced, it is easy to get into a situation where the goal of policy is to “avoid another crisis”. However, this is not a trap that our fine readers fall into – so we don’t need to worry about it here . This isn’t to …
Permanent link to this article: http://www.tvhe.co.nz/2011/04/04/central-banks-second-best-policy-and-operational-separation/
Mar 25 2011
Understand before you tinker
I would be lying if I said this didn’t depress me. Economists, great economists, economists I idolize stating that there are “imbalances” we must solve – and then telling us how to solve them without actually describing what the imbalance is and why it exists.
Permanent link to this article: http://www.tvhe.co.nz/2011/03/25/understand-before-you-tinker/
Mar 23 2011
Remember what inflation is
There are a larger and larger number of analysts and journalists complaining about inflation at present. The view seems to be that since the price of some goods are increase (fuel and food primarily) there is an inflation problem, and “something must be done”. Because people have heard the RBNZ mention inflation they figure that …
Permanent link to this article: http://www.tvhe.co.nz/2011/03/23/remember-what-inflation-is/
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