RBNZ is a litmus test of Australian monetary failure

As we know, the superb RBNZ has fully integrated monetary and macroprudential policy tools, a creative leadership and national interest values. This enables 300 staff to conduct all of the functions that Australia’s combined monetary regulators fail to do with 1,400. It uses big and dumb rules to govern financial stability, the cash rate when needed and macroprudential to suppress capital misallocation. All from a single, accountable cockpit.

It is the open working model for what Australia should be. But that makes it unAustralian apparently, via the AFR:

AMP’s stock price plummeted on Monday after the company announced that the Kiwi regulator had effectively sunk the sale of its life insurance business.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.