Oct 10, 2008

Why Are We Uncoordinated?

We were just listening to the head of the IMF on the radio. He made it clear that the only way we are going to get out of the current financial mess if if we act in concert. Yet New Zealand seems to be an outlier. Why is this? And why, if everyone is expecting a big rate cut in two weeks, doesn't the RBNZ act immediately? Why wait two weeks to ease pressure on business? Why keep our currency higher against the Australian dollar (our biggest export market) than it would otherwise be if we had an 100 point cut?