Comments

David Thompson Posted:
So very, very true. It beggars belief that we consider ourselves to be a developed nation when so much of our economy is based on selling milk powder or logs. BTW, I own a Plinius amplifier (my second) that drives a set of Theophany speakers.
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David Thompson Posted:
A robust but sobering report. It concerns me that confidence is rising, yet sales and exports are down and "manufacturers and exporters are still lagging behind other sectors". Surely we should wait until we're earning more money before we start spending more?
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siemens Posted:
Yes true! The only thing that will never die in this world is the nature and its science behind it. Great post.
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Kieran Ormandy Posted:
Thanks for the question Steven, Germany has seen increases in manufacturing employment since 2009, and Switzerland has had stable manufacturing employment between 2006 – 2011, even in the face of ongoing Euro-zone issues. Korea has seen increases in manufacturing employment since 2008 and Israel experienced large increases since 1998, while being stable over the last 4 years. Singapore has had increases in manufacturing employment over the last two years. These countries all value their manufacturing sectors and work to protect them, this is reflected in the above numbers and their performance through the GFC. Note data around the above examples was sourced from OECD labour market stats.
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John Walley Posted:
Point one: you should have no doubt what our Association says publically represent the views of our members. Point two: we don’t knee jerk responses, if you trace back our comments around NZPower you will see them link all the way back to our research in 2004 and 2005. All that material is fully linked from our comments above. Point three: you will note our comments on major users, sadly the same advantage does not accrue to smaller industrial users. The perverse incentives of the LRMC approach in all this are well known. Point four: the NZMEA is not like any other Association in New Zealand we admit only manufacturers and exporters into membership, and our public expressions are the views of that restricted membership.
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8/5/13

Active Central Banks


Print-friendly 0 comment(s) Posted in: In the media

The Reserve Bank of New Zealand (RBNZ) has admitted to intervening in currency markets responding to the appreciation of our currency, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “It is good to see the RBNZ make some moves to lower our currency, but they can do much more than “take the top off the rallies”. The sharp drop in the currency across the board shows just what action from a central bank can do. If the RBNZ were to commit to a more long term set of actions to bring down the currency, we would see a sustained effect on the dollar. This could be achieved through a co-ordinated mix of currency intervention, monetary policy and other macro-prudential tools.”

“We consistently reference the example for the Swiss Central Bank using the infinite capacity of a central bank to place and enforce a currency ceiling.”

“The Reserve Bank of Australia (RBA) has also cut a further 25 basis points off its cash rate to a record low 2.75%. They are taking action against the appreciation of their currency.”

“Much of Australia’s recent economic success has been built on the back of their strong natural resource based businesses. Now their exporting sector is struggling, largely due to strength of their currency.”

“Why is this important for New Zealand? Australia has been a bright spot for exporters in recent times; meaning businesses exporting to Australia for Australian consumption have been doing okay, compared to those selling into the U.S and Europe. The RBA takes action to lower the pressure on the AUS$ and places upwards pressure on the NZ$; this will hurt New Zealand exporters.”

“We are pleased to see the Reserve Bank of New Zealand (RBNZ) commit to putting new tools into place for increasing reserves for high Loan to Value Ratio loans as well as some currency intervention.”

“Even so, our dollar remains significantly overvalued, hurting exporters.” 



tags: currency, rba, rbnz, intervention, monetary policy

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