Inflation targeting has failed, RBNZ needs to change, says Parker

Wed, 19 Sep 2012

By Pattrick Smellie Sept 19 (BusinessDesk) - Two decades of conventional monetary policy targeting low inflation have failed New Zealand, which has come through the global financial crisis with an over-valued exchange rate and persistently high balance of payments deficit, says Labour's finance spokesman David Parker. The Reserve Bank of New Zealand should be looking to copy other countries' central banks to "put grit into incoming capital flows", target a lower exchange rate, and use new tools intended to protect financial system stability t...

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