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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13/11/14

LVR speed limits important


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

The Reserve Bank of New Zealand (RBNZ) announced yesterday that LVR lending restrictions on banks would remain unchanged for now. This is important for keeping pressure off the OCR - the interplay of this and other macro-prudential tools should always be considered, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “Macro-prudential tools are targeted to financial stability, they also lower reliance on interest rates. The OCR is a blunt tool that risks having damaging affects elsewhere in the economy, in particular the tradable sector. The interactive use of macro-prudential tools and interest rates is becoming increasingly common around the world - we encourage the RBNZ to continue work in this area.”

“The RBNZ repeated that in the absence of the LVR restrictions, the OCR would have been 25 – 50 basis points higher and likely closer to 50. Such increases would have added to the upwards pressure on our already “unjustified and unsustainable” exchange rate.”

“This highlights the connection between such macro-prudential tools and monetary policy, allowing central banks to better target imbalances in the economy and particular financial stability risks without having to rely solely on interest rates, which can have wide reaching negative effects.”

“While the RBNZ has indicated the LVR policy has been successful in dampening house price inflation, correcting our housing problem will require a wider response, particularly through fiscal policy and the correction of tax distortions.”
 



tags: speed limits, lvr, rbnz, exchange rate, macro-prudential , macroprudential, tools, interest rates, ocr

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