The Greens are trying to weasel out of their batshit crazy printing money policy by pretending it wasn’t really a policy.
SHANE: So just so weâ€™ve got it clear â€“ you want the Reserve Bank to go out and print some new money to buy some earthquake bonds off the government. The government then would use that money to help with the Christchurch rebuild â€“ help build the sewers and the streets and that type of thing â€“ and also to go towards saving for our next disaster.
DR NORMAN: Thatâ€™s right.
SHANE: In a nutshell.
DR NORMAN: In a nutshell, and those earthquakeâ€” Because the government wouldnâ€™t be borrowing for those earthquake bonds from overseas, that reduces the pressure on the New Zealand dollar.Â
The Green Party’s proposals for addressing the high dollar include the following measures:
- A broader mandate for the Reserve Bank to enable a lower Official Cash Rate (OCR) and new tools for managing asset bubbles;
- A comprehensive capital gains tax (excluding the family home); and
- Quantitative Easing (QE) in the form of the Reserve Bank purchasing Government earthquake recovery bonds to pay for the government’s costs in the rebuild of Christchurch and, separately, refilling the Natural Disaster Fund.
“We’re proposing a suite of measures which, in combination, will work to lower our high exchange rate and help restore our productive sector,” Dr Norman said.”
Then there is this:
“We can reduce the pressure on the exchange rate and the tradable sector by empowering the Reserve Bank with a mandate beyond inflation control to include managing exchange rate levels and volatility.
“There are a range of tools that work, which we can choose from.
“New Zealanders deserve a monetary policy that works for them. They deserve politicians that are willing to have a mature debate on the issue and put New Zealand’s interest first, rather than those of the currency traders,” concluded Dr Norman.