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  • Robert MacCulloch

The qualifications of the leadership of the Reserve Bank of Australia (RBA) compared to the Reserve Bank of NZ (RBNZ) are as follows - note that MIT is regarded by most in the profession as the top economics department in the world:


RBA

Governor: PhD Massachusetts Institute of Technology (MIT)

Deputy Governor: PhD Massachusetts Institute of Technology (MIT)

Assistant Governor (Financial Markets): PhD Massachusetts Institute of Technology (MIT)

Assistant Governor (Economics): PhD, University of New South Wales


RBNZ

Governor: Masters in Development Economics, Leicester University

Deputy Governor: Masters, Australian National University

Assistant Governor (Economics, Financial Markets): Master of Commerce, Canterbury, NZ.

Head of Economics: Bachelor of Commerce, Auckland, NZ.


A PhD from a top university is no luxury for running a Central Bank - it's regarded in most serious countries as a vital professional qualification - a requirement for such an occupation. And a similar thing is happening across many Wellington government departments. Where did it all go wrong?

  • Robert MacCulloch

A couple of days ago Down to Earth Kiwi queried the meaning of this formal public statement by the Reserve Bank on the topic of the run-away housing market: "Resilient household incomes, bolstered by wage subsidies .. and supply constraints including land use restrictions and barriers to the supply of infrastructure have also contributed to the recent surge in demand".


Seems like they were saying less supply leads to more demand. We queried it direct with the boss. So today the Bank changed it to read: "Resilient household incomes, bolstered by wage subsidies .. & supply constraints including land use restrictions & barriers to the supply of infrastructure have also contributed to the recent surge in prices".


Spot the difference.


Sources:

https://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Factsheets%20and%20Guides/guide-houseprice-sustainability.pdf?la=en&revision=5f763081-a4bd-4d54-93ab-edc0e1f43828

 

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