Finance Minister Bill English has announced he intends to appoint Graeme Wheeler as successor to Allan Bollard as governor of the Reserve Bank:
Mr Wheeler will be governor-designate until a new policy targets agreement is finalised in the next few months. This is required before a new governor is appointed.
“Mr Wheeler’s extensive experience makes him a highly respected figure in world financial markets and within New Zealand,” Mr English says. “We were fortunate to have someone of his calibre available for this important role.”
From 1997 to 2010, Mr Wheeler was employed by the World Bank. His most recent roles there included managing director operations (2006-2010), and vice-president and treasurer (2001-2006). Previously, he was at the New Zealand Treasury as deputy secretary and treasurer of the Debt Management Office.
Mr Wheeler, a New Zealander, currently lives in the United States and runs his own advisory business.
As required under the Reserve Bank Act 1989, the Reserve Bank board of directors recommended Mr Wheeler’s appointment to Mr English, after an extensive recruitment process domestically and internationally.
“Given his experience and standing, combined with his technical and leadership qualities, the board considered that he has all the qualities required to become governor and chief executive of the Reserve Bank,” Mr English says.
He does not envisage any major changes to the policy targets agreement.
“I consider that the current PTA has served New Zealand well and there are benefits in maintaining consistency in the PTA.
“However, the global financial crisis has focused some attention on monetary policy frameworks, and I want to ensure that the PTA continues to reflect best international practice.”
Mr English also paid tribute to Dr Bollard for his leadership at the Reserve Bank over the past 10 years.
“He helped steer the New Zealand financial system through the biggest global crisis in several generations. At the same time, he ensured that this country continued to enjoy one of the most stable inflation environments in the world.”
People with short memories might not understand how damaging high inflation is.
Those of us who struggled to keep our businesses afloat in the face of soaring inflation and interest rates in the 1980s appreciate the determination of successive Reserve Bank governors and governments to ensure that doesn’t happen again.
Homepaddock 
I agree HP that inflation is a killer for all sections of the community.
It is easy to let things go, ease money supply and stimulate the economy. Create demand.Remember the Muldoon years. But when the inflation genie is out of the bottle it is so hard to get it back in-it usually means real pain. Witness the years 1985-1985 when the people most hurt were the unskilled and the producers of wealth like the rural community.
Winston Peters is one of the critics of a tight money supply, calling for measures to ease supply and stimulate short term gain. In the long term it means pain. Just witness Greece,Spain and Ireland where governments let the good times roll. Now the people have had their good times, things have crashed but they still want to go back to the easy days.
Labors policies would not help while the Greens policy is probably still back in a cave in their wilderness environment.
Mr Wheeler should continue the good work of Don Brash,Rod Deane and Allan Bollard in keeping us on a moderate approach.Disciplined economics.
Thank heavens for politicians like Roger Douglas and Ruth Richardson for the measures of the 1980’s and 1990’s.
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