ezbee:

 

Who knew Don Brashes old stuff from decades past would be divisive?
It's not like we have had this derail things before.

 

Government's 100-day plan starts with 'laser focus' on cost of living, Luxon says
https://www.rnz.co.nz/news/political/503904/watch-government-s-100-day-plan-starts-with-laser-focus-on-cost-of-living-luxon-says

"" Finance Minister Nicola Willis
She pointed to legislation set to be introduced to the House next week to return the Reserve Bank to a single mandate, removing the requirement to consider effects on employment levels.

 

"History tells us that the best way to deliver strong, consistent growth in employment is by first delivering low and stable inflation.
""

 

So you remove supporting employment to support employment?

I'm not sure the Reserve Bank did much on employment specifically and global pandemic was entirely different thing.

 

Problem is classical method to damp inflation is to tighten bank reserves, reduce lending that leads to higher interest rates.
Companies pull back due to lack of financing and its cost.
Employment market tightens as well theoretically reducing wage demands.
Compounded by consumers(employees) cutting back on consuming as they see their income is unstable and borrowing cost high.
So if you want to 'Go Hard' ?  

 

Much of this predates global open markets, so if much of the world is in inflationary cycle can you isolate yourself?
If the most skilled can, just go somewhere else to get that wage rise?
Your imports of skills also can just see us as 'Sydney for beginners' and move on too?

 

 

 

Ive read in these threads, a lot, that inflation in NZ was caused by the past Labour government. Its primarily mainly local, apparently