David Parker thinks the Reserve Bank should be given special powers:
The Reserve Bank should be given more tools to deal with the high value of the New Zealand dollar, Labour MP David Parker said today.
The kiwi has climbed sharply following the US Federal Reserve’s latest stimulus package announcement.
Mr Parker, Labour’s finance spokesman, said under current laws the Reserve Bank had to focus on inflation.
But he added that its objectives needed to be broadened “so that the Reserve Bank is required to address the exchange rate and employment in New Zealand with the same priority given to that as controlling inflation”.
Mr Parker said if the Reserve Bank had that objective, it would have all the powers it needed to address “our over-inflated currency”.
What David parker is advocating is a return tot he very powers that Muldoon had…no thank you very much.
Quite how he thinks the Reserve Bank can influence the currency in an open market against…oh I don’t know…China, or even a modest sized trading room of an international bank is beyond me…it would just burn truck loads of cash and ultimately be futile.
When David Parker advocates for this he is advocating to an increase in fuel prices and almost everything else we consume….basically so that we can continue to pour money into farmers pockets.