DownToEarth.Kiwi has been vindicated on monetary policy and RBNZ Governor Orr has been proved wrong
After printing $50 billion & unnecessarily inflating our economy, the RBNZ Governor panicked, telling a Parliamentary Select Committee he'd "engineer a recession" to bring inflation down again. In a series of articles & media interviews over the past year, I argued NZ should instead be aiming for a "soft landing" - that is, bringing down inflation whilst not stopping our economy with all the distress that would cause. The RBNZ Governor got his way, of course, backed up by Grant Robertson. What has been the result? The IMF recently ranked us near bottom of the entire world in terms of GDP growth. Yet the headlines these past weeks and months now blaring in the US are as follows:
"Consumer inflation data strongly indicates the US is on its way to a soft landing", Nobel Laureate Paul Krugman said. "Everything's Coming up Soft Landing" and just yesterday in the New York Times, "Soft Landing, Here We Come?"