‘Outsourcing’ policy implementation – such as mortgage deferral or wage subsidies - has proved necessary. Of significant interest to central banks globally was how timely and effective fiscal policy could prove to be in support of demand management? ‘Quite timely and very effective’ was the answer across many countries – with a ‘very timely and effective’ answer here in New Zealand.
In recent months we have seen significant fiscal and monetary policy collaboration in both demand-side management and ensuring financial markets remain liquid and functioning. Along with this collaboration, the Reserve Bank has been actively ensuring that people understand the similarities and differences between ‘quantitative easing’ (our Large Scale Asset Programme)11 and direct financing of debt.