Now that David Cunliffe is leader of the Labour Party, a defence of the Reserve Bank Act has to be mounted.
Inflation targeting has worked, price stability is a whole order of magnitude better than it was pre-inflation targeting and our central bank is remarkably transparent.
I am skeptical over the introduction of macro-prudential tools. They require Reserve Bank officials to make judgments about where we are in a business cycle. That’s risky business.
But I am definitely against a rewrite of the Reserve Bank Act. When you make wholesale changes to something that has been working exactly as intended, there will be unforeseeable consequences.
David Cunliffe has been a key driver of the left wing derp on monetary policy, he is almost as bad as Russel Norman and that’s saying something.
Leave the Reserve Bank Act out of your policy proposals Mr Cunliffe. Monetary policy is not some plaything with which to achieve objectives better left to fiscal and regulatory policy if you so choose and the electorate votes you in.