Don't join the currency wars

Oliver Hartwich | The New Zealand Initiative | 01 October 2012

The new governor of the Reserve Bank of New Zealand, Graeme Wheeler, just signed a slightly revised policy target agreement with a greater focus on financial stability, but for some this is not going far enough.

A curious coalition of exporters, newspaper commentators, Labour, the Green Party, and New Zealand First wants the RBNZ to relinquish its traditional focus on inflation. Instead, they want the central bank to intervene and curb the rising exchange rate ...