Election 2014 - Party Policies - Monetary Policy

Election 2014 - Party Policies - Monetary Policy

Monetary Policy

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  • Not available on their website yet.

  • Better coordination of monetary and fiscal policy, initially by adding a requirement to comment on how this co-ordination is occurring to both the Reserve Bank Act and the Public Finance Act.
  • An increased focus on the exchange rate and balance of payments, including using a range of tools to dampen volatility in the New Zealand dollar exchange rate or to influence it if it remains significantly over-valued or under-valued.
  • A comprehensive review of the conduct of monetary policy.
  • Measures to limit future asset (especially house) price inflation, such as introducing a comprehensive capital gains tax exempting the family home. (more here)

  • Maintain the Reserve Bank’s independence and its inflation target.
  • Broaden the objective of the Reserve Bank to include the external balance and allow it to use current tools to tackle our overvalued dollar.
  • Give the Bank a new tool to adjust universal KiwiSaver savings rates as an alternative to raising interest rates. This would mean Kiwis would pay money to their retirement savings instead of higher mortgage payments to overseas banks.
  • Take the pressure off the Reserve Bank’s OCR by using government policy to address the sources of inflation in the non-tradable sector. (more here)

  • Not available on their website yet.

  • Not available on their website yet.

  • Not available on their website yet.

   

  • Reform the Reserve Bank Act to reflect that New Zealand has an export – dependent economy and create a sensible exchange rate regime that serves New Zealand’s economic interests. (more here)

  • Not available on their website yet.

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