Alan Bollard is insane.
See Stuff: RBNZ confirms intervention in NZ dollar.
UPDATE 1: Gareth Morgan calls it right:
Economist Gareth Morgan said: "Overall, this is high-stakes poker. I think we're gonna end up dog tucker here."The "we" here, by the way, is those of us whose money Bollard is gambling with.
UPDATE 2: Gonzo comments:
This intervention may set the stage for some very nasty arbitrage. Let's hope the fund sharks don't take the bait."Hope" is all Bollard has. When the big sharks start biting, Bollard's going to lose our shirt.