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Brad Olsen: Infometrics Principal Economist on Winston Peters looking to restore Reserve Bank's dual mandate
Description
Conversations about reintroducing maximum sustainable employment to the Reserve Bank's monetary policy mandate and inflation targeting could be back on the table, following recent comments from Winston Peters.
Peters had to let this issue go during the last round of coalition negotiations, but speculation indicates he's like to bring the issue up again the next time round.
Infometrics Principal Economist Brad Olsen says there would be very little, if any, differences to the current state of the OCR if these changes were implemented.
"The Reserve Bank is not dumb, they're not looking at the economy and going - well, if only we completely ignore the labour market. You can't ignore people in the economy and their jobs, so realistically - no , we wouldn't expect any real change."
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