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“12 Angry Men” and the Reserve Bank

13/04/2018

Interesting as always and very much on point. When a change is not a change at all. Form over substance.

croaking cassandra

It wasn’t me that introduced that wonderful 1957 movie to discussions about Reserve Bank governance, but them.  I’ll get back to that.

Yesterday the Bank released its first on-the-record speech of the Orr era, although it must surely have been largely written before the new Governor the came on board.  Chief economist John McDermott and one of his staff had prepared a paper for a Reserve Bank of Australia conference.  The title of the paper was Inflation targeting in New Zealand: an experience in evolution.   

I’ve not typically been a fan of McDermott’s speeches (eg here) but this one reads quite well.  It is mostly a background account of how inflation targeting developed and evolved in New Zealand, culminating in some brief, and fairly innocuous, comments on the changes the pending changes to the Reserve Bank Act that the government has recently announced.  For anyone looking for…

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