Alternatives to meddling with exchange rate

September 21, 2012

Meddling with the exchange rate isn’t a panacea for the world’s woes, Employers’ and Manufacturers’ Association chief executive Kim Campbell says.

He says many of the factors influencing the dollar’s values are largely out of our control.

“The things that are in our control include re-examining how central and local government can avoid adding to inflationary pressures,” says Mr Campbell.
Examples are:
* Freeing up the supply of land at local government level to make building a house more affordable.

* Ensuring tax policy takes account of its impact on monetary policy. For example, any new government spending should be assessed for its impact, both short-term and longer term, on inflation.

* Introducing a Regulatory Responsibility Act to improve the quality of regulation.
* Reducing government and private sector debt where appropriate (high debt drives up interest rates as lenders demand a risk premium) – we need to stay the course.

These are far more likely to help and less likely to have nasty consequences than meddling with the exchange rate.

 


Only some employees deserve a fair hearing?

June 28, 2011

Just as I was about to say I’d made a mistake with Friday’s post  using the calls for Alasdair Thompson’s resignation as an example of double-standards from the left  I read:

Labour list MP Carol Beaumont said it was clear Mr Thompson could not continue in his role, and the board should not need to deliberate so long about it.

“They are a large organisation representing companies that employ women workers and the attitude that Thompson displayed was unacceptable in 2011. I would have thought their decision was pretty clear-cut.”

The case does seem clear cut.

His initial mistake was not just what he said but how he said it without any evidence to back up his case.

But saying something stupid, being poorly prepared and expressing yourself badly is not a sackable offence.

However, Thompson then compounded the error in two interviews with TV3 which reflected very poorly on him and the Employers and Manufacturers Association (Northern)  he represents. I wrote on Friday that this still wasn’t a sackable offence but I was wrong.

A 21st century organisation cannot afford to have a CEO with antediluvian views who illustrates poor judgement and communication skills. 

But even if the case is clear cut the board still had to give its employee a fair hearing.

Workers rights are one of the left’s raison d’êtres. They risk undermining them if they think they apply to only some employees.


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