Not only would there be significant administrative problems in ensuring compliance with such measures but the longer-term costs of undermining investor confidence in New Zealand’s commitment to free and open capital markets would weigh heavily against any possible shorter-term adjustment gains. Alas, none of the possible policy changes to encourage private sector saving - or reduce private sector borrowing - is politically easy.
We do that through a well-functioning financial market, interlinked within its various components and collaborating with the rest of the real economy. This SRCM that we launched today can be many things at many times to many people, but it will always be about accruing the gains of financial markets, products and services to the Filipino people.