Inflation peaks at 4% then reduces Finally, households need to remember that saving only through property is unwise, that house prices do not rise forever, and that they cannot rely on others to do their saving for them. If they do, then they can hardly complain when foreigners own a growing part of our capital stock and when they buy New Zealand dollars.
Here, I would like to point to the experience of the Fed in the 1980s under Chairman Paul Volcker, known as the “Volcker disinflation”. And perhaps I may also recall that monetary policy was the subject of in-depth discussion during the period of high inflation in the 1970s and early 1980s.