Tuesday, 12 June 2007

The Wonerful Wizard of Oz

Mr. Holmes has found his wizard, and all he wants is a brain. Lucky for him, and us, Gareth Morgan, economist, is available to us in short snappy bites. With a wilted wisp as well. The name of the game is bag the Governor, and our Guv is right up there right now. He takes with one hand and gives with the other. Who else could I be talking about but the poor Dr. Bollard.

Who would really want to run the Reserve Bank? Really. Thankless job, and all you can do is irritate people with your hawkish statements and throttle on interest rates.

Anyway, as you and I well know, Dr. Bollard has intervened in the currency markets. What he did is your guess as well as mine. (I think it goes along the lines of selling New Zealand dollars to increase its supply available, and, according to the law of supply and demand, lowering its value. The market does dictate after all.) Anyway, Mr. Morgan, that nice chap who likes to get heard by the herd, gave him impression of the move, and decided it was all a big risk that wasn't going to pay off. What Dr. Bollard really has to do is lower interest rates via the OCR, and all will be righted in this turbulent land. Lucky for him, he has a sycophant in Mr. Holmes. Who wuddha thunk it? (Oh yeah, so you're meant to love every word he says too. Remember, it was his progeny that gave us TradeMe, so he can't be all bad.)

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