I say that because awhile ago I had an email exchange with Quigley in early 2020 over the fact that the Reserve Bank repeatedly stated that it had an employment target (as well as an inflation target) when no such target exists, nor has ever existed. When I pointed this serious issue out to Quigley that the RBNZ appeared not to understand its own mandate, he replied as follows:
"Thank you for pointing out the loose language used in that statement by the MPC. You are of course correct that there is no mandated target for employment. I have alerted the team to the need to be more careful in the way they refer to the Bank’s dual mandate. Regards Neil"
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Hold your horses. Loose language, is it? I would say its a case of the RBNZ not understanding what it has been legally charged with doing. So I replied that the problem was far broader than "that" one statement by the MPC, below:
Dear Neil, Thanks for the mail. It's not just that statement by the MPC - every Monetary Policy Statement throughout 2019 and now into 2020 repeatedly refers to the RBNZ targeting an employment rate. This line is typical: "At times, setting a higher OCR to lean against financial stability risks could make us more likely to undershoot our inflation and employment targets". Best wishes
Robert MacCulloch
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Have we lost any form of public accountability in this country? And why am I having to do the job of the Opposition, which seems unable to understand the issues itself?
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