Goff talks gobbledygook on monetary policy

Media statement
Thursday, November 19, 2009

Goff talks gobbledygook on monetary policy

Labour Party leader Phil Goff's reasons for the party withdrawing from the bipartisan consensus over the Reserve Bank policy targets and instruments are gobbledygook, says the Employers and Manufacturers Association (Northern).

"Goff apparently wants lower interest rates, a lower and more stable exchange rate, and a low inflation rate but suggests it's ok for inflation to go higher than the current 1-3 per cent target," said EMA's chief executive Alasdair Thompson.

"We have no idea what on earth that means.

"Achieving all that at once would be like having cake and eating it too.

"The thing lacking in today's speech is any prescription for achieving these conflicting outcomes.

"Goff would do far better promoting more responsible fiscal policy than hinting he has a silver bullet for monetary policy."

ENDS

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