Reserve Bank Governor has been reappointed for a second five year term.
As Brian Fallow says, his record barely scrapes in. His primary goal is to keep inflation between 1% and 3% and over the last three years it has averaged 2.98%.
There is a massive difference between a 1% inflation level (which is what we should have) and a 3% level. A decade of 1% inflation has prices only 10.5% higher. A decade of 3% inflation has prices 34.4% higher, And that decreases our competitiveness and our living standards.Tags: New Zealand