Claire Matthews: Will the next Reserve Bank governor relax capital requirements for banks?....

Calculated risk: will the next Reserve Bank governor relax capital requirements for banks?

Adrian Orr has so far not spoken about the reasons for his recent and unexpected resignation as Reserve Bank governor, but the sudden departure caused understandable speculation.

One suggestion has been that Orr was at odds with the government over his requirement that the Australian-owned New Zealand banks hold high levels of capital compared to other countries.

J. R. MacLeod: Understanding the Basics of Modern Banking

The monetary and banking system plays an incredibly important role in contemporary economies. Knowledge of how this system functions should therefore be spread as widely as possible, yet the education system barely instructs its students about this subject, if indeed it instructs them about it at all. This article aims to contribute to bridging this gap by giving a basic overview of how the system of money creation and banking works today. The reader may also be interested in studying the discussion of alternative systems, however, this article will focus only on describing the dominant system of the present.

Michael Reddell: Wholly inappropriate

It didn’t used to be terribly controversial that powerful independent government bodies and powerful statutory officeholders should “stay in their lane” or “stick to their knitting”. Those entities/individuals typically have a pretty narrow set of official statutory responsibilities and if they are exercising power independently of the naturally-partisan governments of the day, they should focus their energies on those official responsibilities and keep quiet about, and keep out of, other stuff.

Dr Oliver Hartwich: The big eurozone gamble

The European Central Bank’s decision to cut interest rates for the first time since 2019 is a significant turning point in the Eurozone’s monetary policy. After months of grappling with stubbornly high inflation, the ECB has finally blinked, betting that the worst of the post-pandemic price pressures are behind us.

Bryce Wilkinson: How Central Bank mistakes after 2019 led to inflation

A research note released today by The New Zealand Initiative mainly attributes the outbreak of inflation in many economies to central bank mistakes.

Co-authored by Graeme Wheeler, former Governor of the Reserve Bank of New Zealand, and Bryce Wilkinson, Senior Research Fellow at The New Zealand Initiative, the paper argues that central banks overall: