Read our submission, written by Dr Bryce Wilkinson to Treasury and the Reserve Bank. This submission is in response to the third round of consultation on Phase 2 of the review of the Reserve Bank of New Zealand Act.
In summary: The submission strongly opposed dropping the objective of achieving an efficient financial system. Contrary to our submission, the material released for the third round of public consultation indicates that Cabinet has provisionally determined the RBNZ’s high-level objective will be “financial stability.” The Initiative considers this decision to be a major error. Without a high level efficiency requirement, an utterly moribund, entirely government-owned financial system would arguably best meet a “financial stability” objective. An utterly moribund, desultory, high cost private sector hog-tied by regulatory red-tape might achieve financial stability. Efficiency is fundamental and must be reinstated in the RBNZ’s primary objective.