Even a cursory review of the Asian success stories shows they had a very high savings rate and used financial and wage repression and price controls to achieve real undervaluation. How exactly would these authoritarian approaches to policy be implemented here?
Our Annual Report will be made public on Monday, outlining a wide range of investment activities. Most importantly, we are acting to ensure New Zealand remains less susceptible to short-term, sometimes only fair-weather, funding that creates pockets of excess debt and exacerbates economic cycles. We acknowledge that our actions at time may look confusing to the casual central bank observer.