House of the rising sum
It is best, ordinarily, that retired politicians and ex-officials stay out of debates over their successors’ actions. However, with the median house price soaring nearly 20% in the past year, former Finance Minister Sir Michael Cullen has made headline-grabbing suggestions about tackling the runaway property prices. So, too, has former Reserve Bank board chairman Arthur Grimes who, like Cullen, says the market-heating side effects of current monetary policy are economically disastrous for New Zealand. Prime Minister Jacinda Ardern has expressed dissatisfaction with the billowing house-price bubble, but is disinclined to review her Government’s decision last term to prioritise the maintenance of employment in the Reserve Bank’s monetary obligations. The bank, endeavouring to stave off the coronavirus pandemic’s depressive effects, has, in effect, been issuing cheap, new money to the trading banks…