Jun 10, 2008

Who Has Been Loose With The Money?

Colin James writes an interesting opinion piece in today's NZ Herald. But doesn't he let Cullen and the current Government off the hook for too much low quality expenditure/investment in the past 8 years? There is no doubt that Government spend ups have been a major factor in fueling inflation in recent years.

By the way we wouldn't restrict the money supply short term. Things almost collapsed completely in March/April when the banks stopped lending. We were lucky that the Fed did the right thing. Bollard has learned well....