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Green Party says it’s time to reform the Reserve Bank Act

Green Party co-leader Russel Norman told TVNZ’s Q+A programme today that “jacking up the OCR” is not the only answer to the threat of inflation.

He said the Green Party wants a broader approach to monetary policy.

It would also use Government tools to target the sectors where there is inflationary pressure – like housing and electricity.

“What you need to do when you're dealing with inflation coming out of particular sectors is target those sectors like housing, electricity, where we have big inflationary pressures, rather than using the official cash rate to crush the entire economy, bring up the exchange rate and make the tradable sector really struggle, which is the current strategy of this government.”

“We have some deep lying structural issues in the New Zealand economy, and the answer to them isn't to jack up the OCR every time we see inflationary pressures from the housing market, the answer is to target the housing market with the kind of tools the government has available to take the heat out of that market.”

Comments and questions

Words.... Hollow... Empty...

Partial context of a selective small bit of a very large equation.

How about some defined and fully-costed solutions? And not just regarding one small portion of the entire equation.

Norman got a sound bite... But does he have effective solutions and answers?

I've not know Russel Norman to be a thinker and this proves it..can you imagine a Green - Labour government interfering in all sectors of society. .it would lead to the targeting of sectors they wish to control..sort of along the style of communism. ..hands off the Reserve Bank..its independent. .

These people are very dangerous. They have no idea how the economy works.

Just when you thought the prospect of a Labour-Green government couldn't get any scarier...

It's bizarre how any mention of the Greens in NBR always brings out a babble of ignorant, knee-jerk comments. It makes we wonder whether the major impediment to progress in New Zealand is actually that our business people are a bunch of boofheads.

Or maybe the Greens and those who support them are just ignorant morons who haven't got a clue.

Great leaders are born not made... all i see from Labour, National and AIM as carear politics... lets make NZ a benchmark of leading the world rather than folowing trends (peaks and troths).
During the last 5 years of growth, NZ politics did not take advantage of reducing inflation and allowed international corporations in getting fat off the wealth of NZ (artificial inflation growth).. now we are about to head into hard times we are going to get it worse because it wasnt controlled.
Any policical power that wins the next elections will have to resolve the problems that John key has created for this country... isnt it great that the current PM decids to walk away (knowing they are foign to loose the next election) when the country is in its worst state of afairs... its like going on holiday when the going gets tough and get others to puck up the mess you created.

It's time to get rid of the ETS, not reform the Reserve Bank Act. That'd help bring down the inflationary cost of electricity.