Is there an area where a space should be left for confidential reflection? Keynes is quoted as having said: “When my information changes, I alter my conclusions. What do you do, sir?”3  How could we take into account this wise advice in monetary policy making?
Wouldn’t life be much better if we simply did away with such intervention, and allowed pure market forces to determine interest rates? Hasn’t the Reserve Bank, and the way in which it has run monetary policy under the Reserve Bank Act of 1989, caused New Zealand’s huge balance of payments deficit, and won’t pushing up the Official Cash Rate simply make matters worse?