Reserve Bank Fails New Zealanders Again

27 July 2006 12:00:00

“Financial market observers were today unsurprised by the business-as-usual actions of Reserve Bank central planners,” reports Greg Balle, Libertarianz Finance Spokesman. “The much anticipated interest rate statement provoked a yawn as interest rates were left on hold at 7.25% by Governor Bollard. Yet again the Bank has failed to grasp the real solution to monetary problems.”

“Rather than dictating an interest rate to the financial markets, the Reserve Bank should step aside and let a free monetary market agree upon rates of borrowing and lending,” Balle suggested. “Instead, the Bank maintains faith in flawed economic models and ignores the fact that inflation has now wandered above the crucial 3% threshold.”

Balle’s frustration is apparent as he explains, “Anyone who has done Economics 101 knows that government institutions like the Reserve Bank cause the recessions which regularly threaten the economic well-being of all New Zealanders. When a single entity is asked to make decisions affecting so many Kiwis, it is being asked to do an impossible task. The Reserve Bank cannot hope to have access to the wealth of information available to a completely free monetary market, and so it’s decisions will often be wrong.”

“The Libertarianz party would allow a free monetary market, thereby eliminating the boom-bust business cycles caused by government interference in the market,” Balle concludes. “With a stable economy and drastically lower tax rates, New Zealand really could be the South Pacific paradise we portray in tourist brochures.”

“It’s enough to make you vote Libertarianz!”

ENDS

For more information contact:
Dr. Greg Balle
Libertarianz Finance Deregulation Spokesman
Phone: 021 250 5340
Email: [email protected]

Libertarianz: More Freedom, Less Government
www.libertarianz.org.nz