Thinking Differently
http://www.interest.co.nz/opinion/61024/labours-finance-spokesman-david-parker-told-oecd-economist-nzs-monetary-policy-totally
Maybe we can ignore the current account deficit, maybe we can ignore the contraction of our export base, maybe we should ignore the lack of investment in the productive economy, maybe we should ignore the emphasis on asset speculation, maybe we should keep on doing what we do in the face of nearly everyone else throwing out the inflation targeting rule book.
Parker is at least thinking about the problem and talking to people who, at the very least, offer a perspective to balance the conviction that we are on the right track, a conclusion difficult to hold if you are an exporter.
It’s a bit harder to ignore clear and present pain endured now for over a decade by exporters battling an overvalued exchange rate, when the economic framework hangs you dry you tend to ask why. The losses inflicted on our tradeable sector by a policy frame work that ignore the currency, ignores private debt and the associated asset speculation will take decades to unwind, if it can be unwound.
Parker it seems is willing to think differently, we need that.
