Forum Archive Index - March 2004

["David & Jill Stevenson" <djstevo@quicksilver.net.nz>]

With a backdrop of Michael Cullen`s statement today of the implications of a severe downturn in the economy being of more significance than racial issues now surfacing in New Zealand  , one could reasonably draw the conclusion that he sees himself  as powerless to have much influence over events. This more recent statement seems inconsistent with confidence expressed in earlier statements of being able to modify exchange rate problems.. Unless he has primary other purpose such as to defuse potential racial issues. The Reserve Bank Act of 1939 I thought was an attempt to negative overt Government influence . Although the Governor was required to act in accord with Government requirements as stated from time to time .As the present Governor is highly qualified in his field academically , like his predecessor  ,it is a surprise that this Minister of Finance should usurp his role by making announcements such as he has been making . Particularly if  reality tells us that he is whistling in the wind.  Is this policy  more politically based  than economic with this Government in retreat  on so many fronts ?

 

                                  David