Reserve Bank Governor Adrian Orr says central bankers see signs Covid and war have lifted inflation and interest rates more permanently; he says they're determined to get on top of inflation
Thank you very much for creating the full transcript - I find reading easier to assimilate rather than listening, thus really appreciate a) the interview, and b) the transcript; this was a great read.
There is no empirical evidence that interest rates fight inflation (and sensibly it cant work on the supply side) unless taken to extremes where they collapse the economy. The currently orthodox economics (Neoclasssical) being taught has been firmly debunked (see Prof Steve Keen). There is clearly nothing in the current teaching worth retaining. The economic ( or is it political) paradigm includes Reserve Bank Independence and Small (therefore unable to intervene) Government "observing" the free market provide solutions to every economic issue. However unelected bureacrats at the RB are apparently allowed to intervene. In the meantime we also have unfettered money creation by commercial banks, leveraging the housing market. We have already seen Mr Orr stick up his middle finger at the Finance Minister, and essentially knobble any attempt to use fiscal policy. We have been propogandised to believe economists know what they are doing. They dont ! Their theories are bankrupt. We need to reverse the fundamentals that Roger Douglas imposed on us, and restructure our institutions so that the economy works for us, not us for the economy. The first step should be to corral the "independent" reserve bank.
The other end of the pole is usually given as state intervention, in all its guises. From the totalitarian state dictatorships to benign Keynesian models that Bill Sutch espoused in Aotearoa in the 40s and 50s. The gap in this model, like free market liberalism, is that it fails to address the dichotomy of capitalist production. Those who do the work, produce the services and goods have no say in what happens to their output, no control over the benefits or negatives of our political economy.
Yes, socialism has been tried and “failed” but nothing worthwhile succeeds first time around. Our environment, our future, demand we stand up and give real alternatives a go.
I’m not up with Erdgogan’s banking policies and practices, more widely his record in other areas is hardly encouraging of values associated with power re-distribution nor participatory policies.
We have "intervention", but the state (conveniently for the politicians) stands back whilst unelected officials take (actually they didnt take it, it was granted to them, and should be ungranted) control. So much for democracy.
Orr lauds the productivity boost from "Our bedroom is now an office"... What the hell is wrong with these sociopaths??
What next, the Pakistan flooding is good ground irrigation for farming? Filing up our fish stocks with micro-plastics helps them have longer shelf life?
Very interesting. I observed that Mr Orr appreciated the mutual support he received from other central bankers - he obviously enjoyed being fêted. His views on the global economy and short to long-term trends were fascinating. Great work, Bernard - many thanks!
Thank you very much for creating the full transcript - I find reading easier to assimilate rather than listening, thus really appreciate a) the interview, and b) the transcript; this was a great read.
Appreciate that Greg. Bit of an experiment so useful to hear it was useful
I read at about three -four times the speed I listen to podcasts at. In a limited day I usually opt to listen to only the briefest audio material.
There is no empirical evidence that interest rates fight inflation (and sensibly it cant work on the supply side) unless taken to extremes where they collapse the economy. The currently orthodox economics (Neoclasssical) being taught has been firmly debunked (see Prof Steve Keen). There is clearly nothing in the current teaching worth retaining. The economic ( or is it political) paradigm includes Reserve Bank Independence and Small (therefore unable to intervene) Government "observing" the free market provide solutions to every economic issue. However unelected bureacrats at the RB are apparently allowed to intervene. In the meantime we also have unfettered money creation by commercial banks, leveraging the housing market. We have already seen Mr Orr stick up his middle finger at the Finance Minister, and essentially knobble any attempt to use fiscal policy. We have been propogandised to believe economists know what they are doing. They dont ! Their theories are bankrupt. We need to reverse the fundamentals that Roger Douglas imposed on us, and restructure our institutions so that the economy works for us, not us for the economy. The first step should be to corral the "independent" reserve bank.
The other end of the pole is usually given as state intervention, in all its guises. From the totalitarian state dictatorships to benign Keynesian models that Bill Sutch espoused in Aotearoa in the 40s and 50s. The gap in this model, like free market liberalism, is that it fails to address the dichotomy of capitalist production. Those who do the work, produce the services and goods have no say in what happens to their output, no control over the benefits or negatives of our political economy.
Yes, socialism has been tried and “failed” but nothing worthwhile succeeds first time around. Our environment, our future, demand we stand up and give real alternatives a go.
Sadly, that argument is now used by Erdogan as he forces Turkey’s central bank to cut rates.
I’m not up with Erdgogan’s banking policies and practices, more widely his record in other areas is hardly encouraging of values associated with power re-distribution nor participatory policies.
We have "intervention", but the state (conveniently for the politicians) stands back whilst unelected officials take (actually they didnt take it, it was granted to them, and should be ungranted) control. So much for democracy.
Thanks Bernard, a great piece!
So are you still on ‘Team transitory’?
Yes. I took heart from his views on productivity growth.
Orr lauds the productivity boost from "Our bedroom is now an office"... What the hell is wrong with these sociopaths??
What next, the Pakistan flooding is good ground irrigation for farming? Filing up our fish stocks with micro-plastics helps them have longer shelf life?
Very interesting. I observed that Mr Orr appreciated the mutual support he received from other central bankers - he obviously enjoyed being fêted. His views on the global economy and short to long-term trends were fascinating. Great work, Bernard - many thanks!
An excellent interview. Why do some want to get rid of him?