Fran O'Sullivan has returned from leave with a good analysis in today's NZ Herald of the Prebble resignation - which she had predicted - and of the speech Bollard gave yesterday on the gathering economic storm "Bollard yesterday pointed to demand and cost side risks to the operation of monetary policy: the oil price surge, the commodity boom, the synchronised global housing boom, the shock to personal consumption from the run down in household savings across the advanced economies, and efforts to mitigate the risks of climate change.
Bollard's message, judged important enough to issue in a separate paper, was a sobering one.
It demands a sober response from Government." Fran suggests that the Government's response to date has not been adequate .."But there is an element of wishful thinking and outright spin at work".
The Hive agrees.
