One need only look at new Reserve Bank Governor Hawkesby's Executive Leadership Team to work out why New Zealand's Reserve Bank should be ranked, in my view, as World's Worst Central Bank. The integrity, reputation, respect, and independence it once enjoyed must be restored. Without it, NZ cannot prosper. It is our single most important economic institution.
Look at the Governor's Leadership Team of seven Assistant Governors - Angus McGregor, lawyer; Karen Silk, accountant; Greg Smith, accountant; Nigel Prince, accountant; Sarah Owen, lawyer; and Simone Robbins, lawyer. Three accountants and three lawyers, with a math guy thrown in for good measure.
What are the two most important functions of the RBNZ? Monetary Policy and Financial stability. Both are hard subjects. Both squarely fields of economics. The sooner the new Temp Governor is replaced by a person with Economic Gravitas capable of restoring the once towering reputation of the Bank, my first employer, which was the first Central Bank in the world to set a transparent inflation target, the better.
Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.
6 comments:
Seems glaringly obvious ( even for the man in the street). But when one considers how far political scientists and communications graduates have gone - and the damage they have done - the obvious needs to be stated.
Guessing all born in NZ and educated at NZ universities. Could, of course, actively recruit people not born in NZ with, say, PhDs in Economics from MIT or Harvard. But the NZ way is 'like hires like'.
Anonymous 4:16 AM, point well taken, but please no-one from Harvard
The central banks and government work hand in hand to steal from their people. One borrows fiat currency into existence, the other prints or digitizes it, while we the tax slaves pay the interest on every debt note created.
Inflation is another silent tax imposed on the tax slaves, and is always and ever a monetary phenomenon controlled and manipulated by these thieves.
Why has New Zealand got ZERO gold (real money) holdings? It was Brash who sold our holdings while central bank governor in the 1990’s.
Seconded!
Surely Brash did not do a Gordon Brooone? Gold is more than just real money, it is like a canary in the mine. It is right now letting us know that things are about to blow up with fiat currencies - Worldwide.
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