New Zealand Financial Minister Grant Robertson has crossed the worse saying that the coordination of fiscal, monetary policy is crucial.
Robertson has also said that he supports the Reserve Bank of New Zealand's decision to use alternative tools.
The support was first put down in a letter of indemnity and within a memorandum of understanding between Robertson and Adrian Orr, the Governor Reserve Bank of New Zealand back in March:
A memorandum of understanding between the Minister of Finance on behalf of the Crown (the Minister) and the Reserve Bank of New Zealand (Reserve Bank) recognises that the Reserve Bank may from time to time need to use alternative monetary policy tools. In particular, the Monetary Policy Committee of the Reserve Bank (MPC) is considering large scale asset purchases of New Zealand domestic government bonds (Programme) as a monetary policy tool.
The Minister supports the use of the Programme by the MPG as a monetary policy tool to reduce borrowing costs for New Zealand businesses and households, boost credit and lower the value of the New Zealand dollar - all of which is intended to stimulate investment and boost demand for New Zealand goods and services ...
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