Election 2017 - Party Policies - Economy - Monetary Policy
27th May 17, 9:52am
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Monetary Policy
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- Better coordination of monetary and fiscal policy, initially by adding a requirement to comment on how this co-ordination is occurring to both the Reserve Bank Act and the Public Finance Act.
- An increased focus on the exchange rate and balance of payments, including using a range of tools to dampen volatility in the New Zealand dollar exchange rate or to influence it if it remains significantly over-valued or under-valued.
- Changes to the Reserve Bank Act to address the way that the Bank considers inflation, employment and external balance of trade issues when setting monetary policy
- Reviewing the role of complex financial instruments within the New Zealand economy and their impact on sustainable development, with a view to encouraging the financial sector to take responsible, long-term financial decisions and avoid excessive risk to economic stability.
- Measures to limit future asset (especially house) price inflation such as introducing a comprehensive capital gains tax exempting the family home.
- Read more here.
- Undertake a review of the Reserve Bank Act that protects its independence but ensures that monetary policy plays its part in meeting our economic goals.
- Broaden the objectives of the Bank (Section 8 of the Act) from just price stability to also include a commitment to full employment.
- Change the Reserve Bank’s decision making processes so that a Committee, including external appointees, will have responsibility for setting the Official Cash Rate. The Committee will publish the minutes of its decision within three weeks, noting any dissenting views.
- Read more here.
- Set up a consortium of iwi, Māori land trusts and corporations to invest in major economic development opportunities. Set up a Māori bank to administer housing, land development and business start-up loans.
- Read more here.
- Delivering surpluses and reducing debt to prepare for the next Global Financial Crisis or natural disaster.
- We’ve got debt on track to fall below 20% of GDP by 2020, and we’re meeting our longterm goal of having debt down to 10-15% of GDP by 2025.
- Read more here.
- Replace Inflation Targeted Monetary Policy with monetary policy based on the Singaporean model.
- Grow KiwiBank by making it the Government’s banker.
- Introduce a Deposit Guarantee Scheme for majority-owned New Zealand registered banks.
- Reform the Reserve Bank Act and regain economic sovereignty over banking and financial services.
- Establish KiwiFund, a government owned KiwiSaver provider, which will have a focus on investing in New Zealand assets and infrastructure.
- Read more here.
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