National to appoint Cullen as Reserve Bank Governor

April 1st, 2009 at 7:15 am by David Farrar

I understand that later today National will be announcing that they are appointing as Governor of the Reserve Bank.

Their initial plans to make him Chairman of a major state-owned enterprise were criticised for his lack of commercial experience. Hence they have shifted course and now plan to make him Reserve Bank Governor as that is normally filled by people with more of an academic than commercial background.

Some MPs have told me they opposed the appointment, when it was notified to Caucus yesterday, but no formal vote was held. His appointment is part of the Key’s strategy to appear magnamious in victory and use talent from all parties.

The dissenting MPs are worried that here could be a minor loss of credibility for National to appoint to such an important role, the man whose financial and economic policies they have criticised for the last decade. But the clinching argument was that as National has adopted so many of them, they may as well adopt their architect also.

It will be interesting to see whether the dollar rises or falls, once the appointment is confirmed.

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63 Responses to “National to appoint Cullen as Reserve Bank Governor”

  1. Pascal (2,015 comments) says:

    *checks* Yes, yes it is. Damnit David, it’s too early for this!

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  2. Whaleoil (766 comments) says:

    Oh dear…..

    The dissenting MPs are worried that here could be a minor loss of credibility for National to appoint to such an important role, the man whose financial and economic policies they have criticised for the last decade. But the clinching argument was that as National has adopted so many of them, they may as well adopt their architect also.

    Sad but actually true in many respects.

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  3. the deity formerly known as nigel6888 (856 comments) says:

    very. poor. call.

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  4. tvb (4,210 comments) says:

    I assume he is not THE Reserve Bank Governor but sits on the Board alongside others. He has an in depth knowledge of the public sector which makes up 40+% of the NZ Economy including the operation of SOEs so the appointment has quite of lot of logic to it. After 9 years as Finance Minister he is quite experienced and it would be stupid not to use him in some way. And he is ready to give up party politics so he is more acceptable to the Government. NZ is far too small for petty tribal politics.

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  5. the deity formerly known as nigel6888 (856 comments) says:

    ah, yes, what day is it again? more coffee required.

    nice one, got me.

    :)

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  6. expat (4,048 comments) says:

    http://news.hereisthecity.com/news/business_news/8901.cntns

    The Proper Way To Respond To G20 Protesters

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  7. OECD rank 22 kiwi (2,811 comments) says:

    Now now David. You already covered today’s special post with Helen Clark being appointed to the UN jobbie. By comparison appointing Michael Cullen as Reserve Bank Governor would ALMOST make rational sense.

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  8. slightlyrighty (2,496 comments) says:

    That would be a ‘fool’ish move in my opinion.

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  9. Inventory2 (10,112 comments) says:

    So, today being what it is, he’ll be “gone by lunchtime” ;-)

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  10. Don the Kiwi (1,602 comments) says:

    The up side is that it’ll get Kullen’s nasty smarmy arse out of the debating chamber.

    The down side is he still has a finger in the running of our economy.

    What the govt. can do is change the RB Act to limit any damage he still may inflict on us.

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  11. getstaffed (9,189 comments) says:

    Initial reaction: Huh!???!??! Shocking decision. My impression of National plummets. I wanna cry …

    Second reaction: Hmmm, hold your friend close and your enemies closer. And how much harm can he do when his moves are constrained by the Reserve Bank Act

    Third reaction: Cullen is a nasty, vindictive prick. I’ll have to put up with him on the tele again (hasn’t the break been nice!) and is there a chance he’ll sabotage NZs economy – again – come the next election?

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  12. Adolf Fiinkensein (2,798 comments) says:

    Almost believable. Then it would be the BBC rather than the RBNZ. Brash, Bollard, Cullen.

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  13. getstaffed (9,189 comments) says:

    OT: I presume that DPF has answered questions about the loss of the edit function. I missed this. Can anyone provide an update?

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  14. Lawrence Hakiwai (119 comments) says:

    I too was about to rant about “well at least it will speed Judith back to the Labour caucus – but this is crazy” – you got me.

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  15. homepaddock (431 comments) says:

    ‘So, today being what it is, he’ll be “gone by lunchtime” ‘

    If only his legacy for which we’re all paying so dearly could also be gone by lunchtime.

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  16. Christopher (425 comments) says:

    assume he is not THE Reserve Bank Governor but sits on the Board alongside others. He has an in depth knowledge of the public sector which makes up 40+% of the NZ Economy including the operation of SOEs so the appointment has quite of lot of logic to it. After 9 years as Finance Minister he is quite experienced and it would be stupid not to use him in some way. And he is ready to give up party politics so he is more acceptable to the Government. NZ is far too small for petty tribal politics.

    Check your calendar, my friend, you just got pwnt.

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  17. expat (4,048 comments) says:

    And in other breaking news, Helen Clark to meet Barack Obama with a view to becoming his live in ethics adviser.

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  18. Murray (8,838 comments) says:

    Whaaaaaaahahahahaha.

    Someone tell Cullen and see how long it takes him to check the date.

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  19. CraigM (694 comments) says:

    “Someone tell Cullen and see how long it takes him to check the date”

    I’m waiting for some genious in the MSM to pick it up and run with it :-)

    You reading this Dunc?

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  20. Patrick Starr (3,675 comments) says:

    It’s April 1st – and you’re have to tell us this is a joke -……right??????????

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  21. Nomestradamus (2,948 comments) says:

    My sources are slightly better than DPF’s – here’s the leaked press release:

    The Finance Minister today announced that Dr Michael Cullen has been appointed Reserve Bank Governor and that he and the Governor had signed an unchanged Policy Targets Agreement (PTA).

    “Michael has demonstrated his integrity and outstanding general management skills in his parliamentary career so I am pleased to accept the Reserve Bank Board’s recommendation to appoint him for a five year term,” said Mr English.

    The Minister and the Governor agreed that the current PTA continues to ensure transparency and provides an appropriate basis for accountability in the conduct of monetary policy.

    “As Minister of Finance my priority is to maintain a disciplined fiscal policy approach to help the Governor achieve the inflation outcomes in the PTA.”

    Dr Cullen said he was pleased to accept a term as Governor of the Reserve Bank.

    Mr English and Dr Cullen added that if their understanding of the appropriate targets and mechanisms changed for the operation of monetary policy, which could arise from the select committee inquiry into monetary policy, then Mr English and Dr Cullen could agree to amend the Policy Targets Agreement at that time.

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  22. big bruv (13,328 comments) says:

    A magnificent gesture from Key and one that is well deserved, Cullen will bring his own brand of financial brilliance to this position.
    Even those of us on the so called far right should learn to accept that under Dr Cullen’s direction the country has enjoyed the very best of economic time, it is because of him that we are now in a position to weather this storm.
    We should also learn to appreciate that because of his enlightened direction we have seen a massive increase in the living standards of all Kiwi’s, crime is down, violence is down, and because of the policies of Dr Cullen Kiwi’s are beginning to come home in their droves.

    I hope this type of inclusive approach continues, there are many ex MP’s and ex Ministers who could help the country should Key choose to use their experience, personally I would like to see Winston’s talents used in the area of foreign affairs or racing, Judith Tizard should be used in the area of the Arts where she has extensive experience.

    It is time to set aside petty politics, I applaud this move by Key and the Nat’s

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  23. Dave Mann (1,169 comments) says:

    Nice one David! Yours is the only site I have found so far this morning which has a sense of humour! Well done :-)

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  24. tvb (4,210 comments) says:

    Yes I get it April Fools joke, but appointing Cullen to the Board of the RB does make sense.

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  25. dave strings (608 comments) says:

    gud on yer m8

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  26. dad4justice (7,791 comments) says:

    I would like to think Dr Caustic Kullen is given a job in a rubbish recycling factory where he can cause no further harm to society.

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  27. david (2,539 comments) says:

    D4J that’s OK if you don’t mind buckets of bile leaching into the groundwater. Perhaps the well in Rolleston Av (round Christs College I believe it is) would get even further contamination in the Aquifer.

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  28. LUCY (359 comments) says:

    You nearly had me for a while, then I remembered it was 1 April. That got the heart going. Good one.

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  29. Crampton (214 comments) says:

    Dammit I hate April Fools. Scared the crap out of me for about 15 seconds, was wondering how quickly I could short the dollar to beat the rush….
    You’re an evil evil man Farrar.

    [DPF: Heh you have not been alone. One PR firm started writing up a flash advisory to their clients :-)]

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  30. Portia (204 comments) says:

    You got a plug on Morning Report though :)

    [DPF: Oh when was that?]

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  31. racer (258 comments) says:

    In other news Dad4Justice appointed new head the of the Families Commission?

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  32. Murray (8,838 comments) says:

    Always the nasty party rep racer.

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  33. Inventory2 (10,112 comments) says:

    And Helen Clark’s been confirmed for the UNDP job, starting 20 April – and that’s NOT a joke!

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  34. expat (4,048 comments) says:

    kiss off loooooser. aka ‘racer’.

    the grown ups are talking.

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  35. expat (4,048 comments) says:

    crampton – your forbes article about the election was good.

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  36. Murray (8,838 comments) says:

    The jokes on them Inventory2, heres where we take the money and RUN!

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  37. GPT1 (2,091 comments) says:

    What’s the date again? Not just Happy Tax Cut Day!

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  38. Grant Michael McKenna (1,156 comments) says:

    had me going, you ba$t#rd, now I have to go change my pants…

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  39. phobius (46 comments) says:

    April 01 – Phew

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  40. greenfly (1,059 comments) says:

    While we are on Cullen, how did he go against ol’ gimlet-eyes the other night? There’s been nary a whisper here. Who wiped the floor with whom?

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  41. burt (7,835 comments) says:

    This is excellent news. Dr. Muppet Cullen will be an excellent competent good OK recognisable Reserve Bank Governor. I hope he finally gets to implement his regional interest rate policy that he talked about back in 2000/2001.

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  42. burt (7,835 comments) says:

    tvb

    … but appointing Cullen to the Board of the RB does make sense.

    Good to see you continuing the April 1st theme.

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  43. Murray (8,838 comments) says:

    Still struggling for relevance I see greenfly.

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  44. Hoolian (220 comments) says:

    You bastard, DPF. I fell for it.

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  45. dad4justice (7,791 comments) says:

    “In other news Dad4Justice appointed new head the of the Families Commission?”

    What a sensible call racer. Thank you.

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  46. s.russell (1,565 comments) says:

    Later today the Catholic Church will announce that Winston Peters is being consecrated as a bishop in the church. Word is that Benedict wants him rapidly advanced to a cardinalship so he will be well positioned for the next papal election.

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  47. longbow (130 comments) says:

    nice one…

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  48. greenfly (1,059 comments) says:

    Murray – read your comment and thought, “That’s sensible!”

    then remebered that its April 1st!

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  49. Inventory2 (10,112 comments) says:

    Not possible s.russell, unless the Pope is going to relax the celibacy rules!

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  50. Murray (8,838 comments) says:

    I’ll miss you most of all greenfly.

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  51. side show bob (3,660 comments) says:

    Yeah and I’m the queen mother. If you said he was being employed to clean the reserve bank shit houses, more fitting for his skills, I would be more inclined to take you seriously,

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  52. burt (7,835 comments) says:

    I2

    Not possible s.russell, unless the Pope is going to relax the celibacy rules!

    Keep up, when Winston is asked if he is celebit he will hold up a sign with “Yes” printed on it and naturally nobody will question him about it. Needless to say anybody who knows he is telling porkies will have their own self interest to protect by keeping quiet and that will be just fine by his supporters.

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  53. toad (3,669 comments) says:

    I took a similar approach to April 1 over at g.blog – just with different politicians.

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  54. ben (2,399 comments) says:

    Ha, you got me. Well done. :-)

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  55. Brian Smaller (3,999 comments) says:

    Later today the Catholic Church will announce that Winston Peters is being consecrated as a bishop in the church. Word is that Benedict wants him rapidly advanced to a cardinalship so he will be well positioned for the next papal election.

    Very plausible. Peters already thinks he is infallible.

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  56. Jack5 (4,595 comments) says:

    11.53 and Cullen has seven minutes left as chairman.

    We can say that in his term as chairman Cullen did bugger all.

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  57. Rex Widerstrom (5,276 comments) says:

    toad – Well I liked it. Specially the “drunken bigot” comparison :-D

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  58. glubbster (352 comments) says:

    lol, we all should know its 1 April today. Nice try and you were serious enough to con some of the suckers on here ;)

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  59. LeftPilot (63 comments) says:

    Priceless! Well done DPF, I was amazed on opening the comments how many people fell for it. The beauty of a blog – being able to keep a straight face :)

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  60. Dazzaman (1,123 comments) says:

    …Cullen did bugger all.

    Jack5
    Next time Jack emphasise did with BOLD tags! :wink:

    I hate this joke…not funny at all! This bastard needs a job in the meatworks, hopefully he’ll manage to cut his acid tongue out!!

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  61. serge (108 comments) says:

    I see, Reserve Bank governor and Iwi negotiator on the side? I would watch the money transfers from the State like a hawk! Cullen should not be seen nor heard…….

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  62. voltaire (43 comments) says:

    Mention was on Morning Report around 0855

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  63. GJ (329 comments) says:

    After destroying the country they want him as Reserve Bank Governor? A stupid decision that would be.

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