• rmacculloch

How our RBNZ screwed up, and is still screwing up, in the succinct words of Milton Friedman

Former Chair of the US President's Council of Economic Advisers and Harvard Professor Greg Mankiw concurs with those of us in NZ who have been arguing the Reserve Bank stuffed things up in 2021 by printing $50 billion of cash and cutting the Cash Rate close to zero ... and is now stuffing things up again, overreacting by hiking the Cash rate too much and thereby causing carnage in the mortgage market.

Mankiw's succinct summary of the Great RBNZ Screw Up, caused by the low degree of competence & poor understanding of macro-economics that exists there, comes in the form the following Monetary Wisdom from Milton Friedman:

"From his famous AEA presidential address, still relevant more than a half century later