The Greens called yesterday for the Reserve Bank to create more money to buy earthquake recovery bonds for the costs of a Christchurch rebuild, and to top up the natural disaster fund of the Earthquake Commission."The global financial crisis has changed all the rules and National's doctrinaire approach is no longer serving our economy well," says Greens co-leader Russel Norman."We're proposing that the assets they should purchase are earthquake recovery bonds issued by the Government, which means the Government has to borrow less from overseas which reduces the pressure on the New Zealand dollar."
Mr Parker says the Reserve Bank, which has inflation control as a priority, needs its target broadened. He says that could be done within current legislation.
And Norman has some high-powered support:
Labour is joining the Greens in pressuring the Government to intervene to reduce the value of the New Zealand dollar.Finance spokesman David Parker says his party can see some merit in the Green Party's call yesterday for the Reserve Bank to create money, or what is known as quantitative easing.