Wednesday, 27 October 2021

"...the Reserve Bank has forgotten what its core business is."



"[Price] inflation hit 2.2% in the most recent quarter. Not the annual rate - the rate for the quarter.
Arguably, Reserve Banks shouldn't be making statements about inflation outside of the scheduled monetary policy schedule.
    "But it seemed a bit odd that the Bank put out a release on establishing the Māori Bankers Rōpū to coincide with the release of the inflation statistics. 
    "They came out within minutes of each other, as though the Bank were saying 'Yes, the CPI numbers are out today, but here's what we're really interested in.'
    "Today the Bank released its Climate Change report.
    "New Zealand has an Emissions Trading Scheme that caps net emissions.
    "The ETS is nowhere mentioned in the report.
    "The Executive Summary tells us that 'Climate Change is part of our core business.'
    "It simultaneously tells us that the Reserve Bank has forgotten what its core business is."
          ~ Eric Crampton, on 'Core business for a central bank'

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